Car industry hits production hurdles as global supply chains slow

As the fallout of the COVID-19 outbreak continues, let’s take a look at its impact on the car industry. Motor companies in Taiwan are resorting to furloughing workers and cutting shifts to deal with a lack of parts. The global supply chain of car parts has slowed down, with factories across China still on lockdown. Even car mechanics in Taiwan are starting to feel the threat to their business, as they struggle to order replacement parts for customers.This car mechanic fits new shock absorbers as quickly as he can. The car’s owner has already waited a long time for this repair. Since the Lunar New Year, it’s been impossible to order a genuine part from the official manufacturers.Lin Chuan-yungCar mechanicI guess it’s because of the virus, perhaps they can’t produce it right now. So I’ve had to get an aftermarket part instead.The global car industry’s production chains have been disrupted by the new coronavirus. Mr. Lin has been a car mechanic for almost 20 years. He says it’s even harder to get parts now than it was during the SARS epidemic.Lin Chuan-yungCar mechanicRight now we’re not looking at having to reduce our working hours, because we’ve got enough of our basic stocks, like maintenance materials. But the stocks are getting lower and lower, and some cars might have to wait for repairs. We’ll see about having to reduce the guys’ hours.With car components factories in China on shutdown, Taiwanese car manufacturers that use those parts are also having to shrink production. Factory workers have been put on an early spring break. Yulon Motor Company is one manufacturer that’s instituted a three-day week. China Motor Corporation added three days’ holiday to March. Ford Lio Ho Motor is adjusting production schedules, with workers losing shifts on rotation since February. Current estimates suggest that stocks will not be back to full until industry is resurrected in China’s Hubei province.Lin Chuan-yungCar mechanicBecause of the epidemic, lots of parts and materials from Japan and China have been affected.As Mr. Lin points out, not only Chinese industry but also Japanese car makers are feeling the pinch. If things don’t pick up in the coming weeks, Japanese car factories will also face a serious production crisis.