Coronavirus Creates Domino Effect in Global Automotive Supply Chain

[question everything]

By Ben Foldy in Detroit and
Eric Sylvers in Milan

Fiat Chrysler Automobiles NV said it is temporarily halting production at a car factory in Serbia because it can’t get parts from China, a sign of how the coronavirus outbreak is creating a domino effect in a straining global supply chain.

At the same time, union officials at two major General Motors Co. factories in the U.S. are warning more production outages could come as certain parts at SUV and truck plants in Michigan and Texas run low.

Fiat Chrysler’s planned shutdown next week at a factory in Kragujevac, Serbia, is the first publicly disclosed closure of a large car plant outside of Asia. Shortages of China-made parts have already begun to ripple through the global automotive supply chain, leading Hyundai Motor Co. and France’s Renault SA to temporarily idle some assembly lines in South Korea. Nissan Motor Co. has had to adjust production at some of its plants in Japan because of problems getting parts from China.

Fiat Chrysler said it was moving up a planned shutdown previously planned for later in the month at the factory, which makes the Fiat 500L sedan. The factory, Fiat Chrysler’s only one making the 500L, has more than 2,000 employees. That stoppage had been scheduled to adjust production to slumping demand. The company said it didn’t expect the change in scheduling will impact its total monthly production. Fiat Chrysler said it is working to get the parts, which it declined to identify, from other suppliers. It declined to comment further.

Closer to home, a factory in Flint, Mich., which makes heavy-duty versions of GM’s Chevrolet Silverado and GMC Sierra pickup trucks, faces shortages of at least two parts sourced from China, said Chad Fabbro, a financial secretary at the United Auto Workers’ local representing workers at the plant. In Arlington, Texas, GM’s assembly plant is confronting the possibility of running out of certain parts from China, said Terry Valenzuela, president of UAW’s local chapter. The situation remains fluid, he said. That factory makes Cadillac Escalades and Chevrolet Suburbans.

More..

https://www.wsj.com/articles/coronavirus-outbreak-could-affect-production-at-2-gm-plants-union-officials-say-11581697246 (subscription)

[virgogal]

1. Frankly the medical supply chain worries me more,frightening.

[customerserviceguy]

2. Another good reason

not to outsource to Chinese sweatshops.

[question everything]

3. On the other hand. I think that we are better off providing employment for people

in what used to be referred to as "developing countries" so they will not try to migrate over here in search of better jobs..