Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Coronavirus
March 25, 2020 06:32 AM

Chinese plants start up as the rest of world shuts down

Tian Ying and Chunying Zhang
Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Volvo produces its S90 flagship sedan at its factory in Daqing, China.

    BEIJING/SHANGHAI -- While much of the world's output is grinding to a halt because of the coronavirus, China is slowly emerging from its shutdowns by restarting production at factories and resuming some flights.

    A recovery in the world's second-largest economy provides some relief for global manufacturers in the months ahead as the outbreak continues to wreak havoc in Europe, U.S., India and Latin America.

    Employees are returning to work, production lines are starting to roll and even the original outbreak epicenter of Wuhan is ending its lockdown soon.

    Car sales in China probably hit a bottom last month and are set to gradually rebound as the spread of the virus slows and consumers return to shopping, an auto industry group said this month.

    "Real-time indicators show that China is re-starting its industrial complex," analysts at Sanford C. Bernstein said in a note Tuesday. "Clearly the re-start is at an early stage, but things are gradually improving."

    Bloomberg

    At the nation's airline industry, whose slump last month decimated its massive aviation market to a size smaller than Portugal's, carriers are slowly restoring flights. Scheduled capacity rose 2.4 percent last week from the previous seven days to 9.2 million seats, while all the other top 10 markets in the world continued to decline, according to flight-data analytics firm OAG Aviation Worldwide.

    Other signs include Chinese subway traffic increasing 21 percent last week, and online sales of large appliances rebounding in both volumes and average prices on a week-to-week basis, according to Bernstein. Much of China was closed for weeks starting in late January after the outbreak extended a Lunar New Year holiday break.

    Bloomberg

    Here's where some automakers in China are now with their ramp-ups:

    BMW

    Production at BMW's Shenyang plants resumed on Feb. 17, and the automaker said it is confident the Chinese government will manage the crisis and defeat the epidemic. "We remain confident in the medium and long-term business outlook of our No. 1 market worldwide," the company said in an emailed response to questions.

    Daimler

    Daimler has reopened its factory in China, and has said the vast majority of its dealerships have reopened.

    Fiat Chrysler

    The company said its manufacturing operations in China have restarted production under the approval of the relevant regional and national governments. More than 90 percent of its dealers and 95 percent of staff at the joint venture with Guangzhou Automobile Group are back online, and "the overall manufacturing and commercial operations are gradually resuming business," Fiat Chrysler said.

    Ford

    The automaker said its Chinese plants resumed production on Feb. 10 and are continuing to ramp up. Both its local joint ventures have achieved almost 100 percent recovery, though some Hubei or Wuhan employees are still under travel restrictions.

    Honda

    The Japanese automaker said capacity is gradually recovering at its two Chinese ventures and so far they have not had problems caused by parts shortage there due to strain in supply from outside of China.

    PSA Group

    The Peugeot and Citroen maker's joint venture with Dongfeng Motor has restarted car production at its plant in Wuhan city, the epicenter of China's coronavirus outbreak. The joint venture is also building cars from two other manufacturing bases in Chengdu and Xiangyang.

    Nissan

    All Nissan factories in China have resumed work and production is set to align with government mandates, the company said.

    SAIC

    All SAIC Motor plants in China have resumed production, with the company adjusting output levels based on demand. The automaker has contingency plans to secure parts in case of any disruptions, it said.

    Tesla

    Tesla's factory in China has recovered from a virus-related shutdown better than many in the industry, helped by aid from local authorities. After resuming operations on Feb. 10, the plant -- Tesla's only outside the U.S. -- has surpassed the capacity it had before the shutdown, reaching a weekly production of 3,000 cars, a company representative said Friday.

    Toyota

    The auto giant's plants in Guangzhou and Changchun have returned to their regular two-shift schedule, while in Tianjin, all production lines are back to two-shift arrangements except one that remains at one shift. The Chengdu plant is sticking to its usual one shift. More than 98 percent of Toyota's dealerships are open again, and the company has no plans as of now to adjust its 2020 China sales target, it said.

    Volkswagen

    Almost all production sites are back to operational, Volkswagen Group said. Challenges include a slow national supply chain and logistics ramp-up, as well as limited travel options for employees. All of Volkswagen and its partners' component production sites are producing again, it said. The company is adjusting its output levels based on current conditions, such as by moving to one shift instead of two previously, according to the company.

    Volvo

    Earlier this month Volvo Cars reopened its four manufacturing plants in China after an extended closure period to cope with the virus outbreak. The automaker said that current showroom traffic indicates a return to normal in China's car market. Volvo makes vehicles in Chengdu, Luqiao and Daqing and builds engines in Zhangjiakou.

    Automotive News Europe and Reuters contributed to this report

    RECOMMENDED FOR YOU
    Ferrari does not need to buy other supercar makers, CEO says
    Recommended for You
    Ferrari horse web_5_4.jpg
    Ferrari does not need to buy other supercar makers, CEO says
    Stellantis parts recycling
    Stellantis plans JV to boost 'end of life' vehicle recycling
    crownsedan-MAIN_i.jpg
    Toyota's next hydrogen powered vehicle will be a Crown sedan
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us