Taiwanese auto parts suppliers with facilities in Wuhan, China, said they are taking measures to curb the spread of the new coronavirus to minimize negative effects on production.
Automotive interior parts supplier Hiroca Holdings Ltd (廣華控股) on Friday said that there had been no cases of coronavirus at the firm’s subsidiary, Wuhan Hiroyoshi Automotive Trim Co (武漢廣佳), adding that the unit only accounts for about 8 to 10 percent of the firm’s total output.
Wuhan is one of the important automobile hubs in China, making up an estimated 8 to 10 percent of total vehicle production in China, DBS Bank Ltd said.
“The outbreak has had a limited effect on the group’s business operations,” Hiroca said in a statement.
The company’s plant in Guanajuato, Mexico, which has been supplying parts for Nissan Motor Co’s Altima sedans since late 2018, is expected to see shipments increase steadily this year and make a positive contribution to the company, Hiroca said.
Automotive lighting module maker Laster Tech Co Ltd (麗清科技) said the coronavirus outbreak is not expected to have any material effect on its new factory in Wuhan, which contributes less than 1 percent to total sales, the company said in a separate statement.
Its operations in Wuhan would resume on Friday next week, while its plants in Shanghai and Dongguang would reopen on Monday next week, in accordance with local government policies, Laster said.
The firm said it would monitor the disease closely and that it hopes to resume shipping as soon as possible.
Tong Yang Industry Co (東陽實業), which manufactures bumpers and automotive sheet metal, said its plants in Hubei Province, of which Wuhan is the capital, have abided by local regulations and arranged different schedules for workers returning from the Lunar New Year holiday.
DBS said that the outbreak could last for several months and affect consumers’ willingness to purchase new vehicles.
Total vehicle sales in China this year are expected to decline by about 3 percent from last year or even by more than 5 percent if the situation drags on, the bank said.
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