Other Stories

Auto industry hit by COVID-19 outbreak Updated: 2020-03-29 14:13:04 KST

The COVID-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 autoparts manufacturer in Incheon says its 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 U.S., but we have been notified from buyers there that they are shutting down for two weeks. A similar notification came from our buyers in Brazil. The entire market worldwide seems to have stopped."

The coronavirus is threatening auto firms around the world.
Ford's manufacturing lines have been temporarily closed in the U.S., 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 thousand parts, which means it needs a massive supply chain. The coronavirus caused a number of related plants in China and other countries to shut down. It will inevitably hurt supply."

There are problems on the demand side too.
A report by S&P Global Ratings expects a noticeable drop in auto demand, and sales have already fallen, dropping by about 15-percent on-year in South Korea last month.
The report says demand will fall in large overseas markets, as the virus spreads across the U.S. and Europe.
Europe and North America take up more than two-thirds of Korea's car exports, and more than half of Korea's autoparts exports.

"The coronavirus has dampened overall consumption and caused a drop in household income due to the economic downturn. There is a possibility that the fall in demand may last longer than expected amid a worsening global economy."

"Despite concerns, automakers are still launching new models as planned. But they say the longer the pandemic lasts, the harder it will be for them to supply and promote their products.
Yoon Jung-min, Arirang News."
KOGL : Korea Open Government License
본 저작물 중 본문에 해당하는 뉴스 스크립트(텍스트)는 공공누리 제1유형-출처표시 조건에 따라 이용할 수 있습니다.