PSA and Renault extend closure of their plants in China

PSA and Renault extend closure of their plants in China

February 25, 2020 0 By autotimesnews

Renault and PSA Group extended the suspension of their industrial activities in China in March due to the effects of the coronavirus outbreak.

Two automakers have factories in Wuhan and Hubei, which are the focus of the epidemic. Note that the Chinese authorities actually shut down Wuhan with a population of 11 million to curb the spread of the virus, and other car manufacturers, including Nissan and Honda, announced that their factories in the area would remain closed.

A spokesman for the PSA Group said the Chinese authorities should decide when production resumes. The Wuhan plant, a joint venture between the French PSA and China’s Dongfeng Motor, is due to reopen on March 12. The concern evacuated its French workers back in January, but has no plans to return them back.

According to the press service of Renault, the enterprise in Wuhan will be closed until March 10.

“Renault closely monitors the situation and strictly applies all measures taken by the local authorities and WHO,” the statement said with reference to the World Health Organization.

The Renault Group factory in Busan, South Korea, where it manufactures cars sold under the Renault-Samsung Motors co-brand, was closed between early February and February 17 as a precaution against the virus. According to a spokeswoman, a stop in China could have an unknown effect on Renault plants around the world.

PSA Group sales in China fell 55% in 2019 to 117,084 cars, which is a sharp drop after more than 700 thousand sales in 2014. In September last year, the automaker introduced a restructuring plan in China, which provides for an increase in profitability by 2021 and an increase in volumes to 400 thousand by 2025.

Sales in China last year from three Renault joint ventures amounted to 179,571, which is 17% less than in 2018.