Auto industry hit by COVID-19 outbreak

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well now the corona virus outbreak is
hitting all industries reducing demand and causing supply chain problems in
part one of a two-part series on the economic impact our young Jungmann takes
a look at the difficulties facing the auto industry the kovat 19 outbreak is
hitting South Korea’s automobile sector a number of South Korean car factories
in North America Europe and India have been temporarily shut down due to the
virus some firms have chosen to cut their
imports of automobile parts from Korea a local auto parts manufacturer in incheon
says it’s local business is surviving despite the outbreak but it is worried
about its overseas business as the virus is spreading fast in other countries we
ship 70 percent of our products to the US but we haven’t notified from buyers
there that they’re shutting down for two weeks
a similar notification came from our buyers in Brazil the entire market
worldwide seems to have stopped the corona virus is threatening our firms
around the world forest manufacturing lines have been temporarily closed in
the US Mexico and Canada until the end of March and General Motors is closing
its North American factories until at least the end of this month a car
requires at least 30,000 parts which means it needs a massive supply chain
the Cornell virus caused a number of related plants in China and other
countries to shut down it will inevitably her supply there are problems
on the demand side to a report by SNP global ratings expect a noticeable drop
in auto demand and sales have already fallen dropping by about fifteen percent
on-year in South Korea last month the report says demand will fall in
large overseas markets as the virus spreads across the US and Europe Europe
and North America take up more than two-thirds of Korea’s car exports and
more than half of Korea’s auto parts exports the corona virus has dampened
overall consumption and caused a drop in household incomes given the economic
downturn there is a possibility that the fallen demand may last longer than
expected amid a worsening global economy the spike assurance automakers are still
launching new models as planned but they say the longer
pandemic loss the harder it’ll be for them to supply and promote their
products you know me Arirang news

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