With the spread of the epidemic in overseas countries, many factories and production enterprises have also suffered a considerable impact. In an effort to contain the outbreak, north American parts manufacturers have shut down. Earlier, carmakers had said parts in Europe could operate normally to keep customers in demand. But as the outbreak in Europe intensified, most parts suppliers have also stopped working, which has had a significant impact on U.S. autos and other industries.
However, it is worth noting that with the good and significant progress made in China’s epidemic prevention and control work, china’s various industries have begun to resume production. Limited to the current shortage of parts in North America and Europe, companies have shifted their supplier stoes to China.
In response to the pressureof the new corona virus crisis, the American Automobile Parts Manufacturers Trade Association (MEMA) asked the government on March 19 for emergency aid, tariff relief and other assistance,media reported.
To that end, MEMA wrote to congressional Democratic and Republican leaders and made a list of requests. The first is to ask the Trump administration to cut tariffs on Chinese products and imported steel.
It is understood that although the major U.S. auto companies are currently cooperating with the epidemic prevention and control work, the adoption of stop-work measures, but the current and future parts of the re-work still have a small gap, and the major European suppliers have also been suspended.
On Wednesday, auto parts suppliergiants Bosch and Continental said they would suspend all or part of production to cope with falling demand, supply chain bottlenecks and protect employee safety. In addition, Theo also said it would suspend production, while tire manufacturers Pirelli and some Michelin plants have suspended production and Brembo’s plants have begun to shut down.
In contrast, China’s auto industry is in the midst of a gradual recovery. Parts supply and vehicle capacity are also climbing. As a result, companies in Europe and the United States have set the market for parts supply in China.