Patipat JanthongDisruptions caused by the coronavirus outbreak have forced auto makers and their suppliers to idle plants across China, rattling the industry's global supply chain and posing another challenge for companies already facing slowing sales and declining profitability. The expected disruptions threaten the ability of auto makers to get key parts and maintain production levels well into 2020. Car company executives say they are still trying to get a handle on how deeply this could cut into sales results and whether it will affect earnings. In addition to disrupting assembly of finished vehicles, China has thousands of auto parts suppliers, some of whom are already telling clients they won't be able to fulfill orders, say industry lawyers. The disruption highlights both the complexity and fragility of the auto industry's global supply chains, said Sheldon Klein, a Detroit-based attorney whose practice works with automotive suppliers.

Source: Bangkok Post February 07, 2020 23:48 UTC