Coronavirus in China affected the auto industryJanuary 27, 2020
Due to the outbreak of the epidemic and restrictions on movement within the country, the auto industry of the Celestial Empire was in a difficult position.
In the news, they are talking about the outbreak of a new coronavirus, from which about 80 people died in China, and more than 3 thousand are in hospitals. The center of infection was the city of Wuhan, which is home to almost 11 million people. In addition, the city is the center of the Chinese automobile industry – on its territory there are many automobile factories that produce cars and components.
Due to the incidence, many enterprises detained employees on leave for a week, and some for 2-3 weeks at all. Meanwhile, managers also faced difficulties due to moving around the country due to a change in the quarantine zone. But the main thing is that people are just scared, and they, of course, put their lives above business interests.
Currently, the PSA Group has announced the removal of 38 of its employees from Wuhan. However, other automakers who have opened joint ventures with their Eastern colleagues are not in a hurry to evacuate.
Demand for cars also decreased, which will negatively affect the market as a whole. This may lead to a further reduction in the Chinese car market, which last year was already in a strong minus.
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