Daimler, Volvo, suppliers see rebound for China output

While vehicle and component production has slowed to a trickle in Europe because of the coronavirus outbreak, Daimler, Volvo and suppliers say their factories in China are coming back online.

Daimler has reopened its factory in China, where demand for cars is recovering, CEO Ola Kallenius told a German newspaper.

"The vast majority of our dealerships have reopened, the customers are returning," Kallenius told Handelsblatt. "Every day more people come to the car dealerships. Demand is picking up, which makes us optimistic."

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.

Another positive sign is that Volvo subsidiary Polestar started production Tuesday of its first volume model, the Polestar 2, in Luqiao.