The tyre business along with the rest of the automotive industry was hit hard by the effects of coronavirus. This tag brings you the latest news as it happens.
Production at two of Pirelli’s three factories in China remains suspended in response to the spread of coronavirus (COVID-19). The tyre maker reports that its entire expatriate workforce has left the country along with their families, and only the car and motorcycle tyre in Yanzhou remains in operation, albeit at “a reduced pace”.
The so-called coronavirus (Covid-19) is threatening Europe’s largest motoring events, with some sources suggesting that March’s Geneva Motor Show won’t be able to take place. However, a statement published by Palexpo (the Geneva Motor Show’s organising company) said the show will go on and that the exhibition is taking all recommended steps.
ZC Rubber reported today that production at its plant in Hangzhou, China resumed on 10 February following a pause taken in response to concerns regarding coronavirus (COVID-19). The manufacturer of the Westlake, Goodride, Arisun and Chaoyang tyre brands says production is now at 70 per cent capacity and is expected to return to normal levels soon. Triangle Tyre says its production also restarted on 10 February.
Following the news that Fiat-Chrysler (FCA) is warning that it could halt production at a European plant in a matter of weeks as a knock-on effect of the coronavirus, market analysts are predicting that such concerns and their impact “will spread rapidly”.
Another tyre maker contributing to coronavirus relief efforts is Sumitomo Rubber Industries, Ltd. The Japanese tyre maker shared yesterday that it has donated RMB 2 million (£220,000) to non-governmental organisation the China Charity Federation. The donation supports the charitable organisation’s ongoing efforts to provide relief to those who are suffering from pneumonia and other ailments caused by the strain of coronavirus that continues to spread in China’s Hubei Province and beyond.
In order to support China’s anti-coronavirus epidemic actions, the Sailun Group has donated 10 million yuan to the Qingdao Red Cross for emergency assistance and to help mitigate the spread of the virus. Of the 10 million yuan donation, 4 million yuan came from the group’s management team and employees.
The coronavirus clearly presents a human tragedy, but it is also affecting international economies and manufacturing in particular. Following our coverage of the impact on the tyre business, various market analysts have been assessing the impact on the automotive industry.
The short story is that internal OE demand is likely to be much harder hit than external exports. According to NBC, China could suffer the loss of 1 million vehicles worth of production due to the suspension of production for at least an extra week in the so-called “motor city” of Wuhan, which is located at the epicentre of the coronavirus outbreak and has a population of 11 million people.
In order to assure the “health, safety and well-being” of all in attendance, the organiser of Tire Technology Expo has announced special attendance requirements for year’s show.
Goodyear Tire & Rubber has responded to the coronavirus outbreak in China by temporarily closing its headquarters in Shanghai and the Goodyear Dalian Tire co. Ltd. manufacturing facility in Pulandian (Liaoning Province). Both facilities are expected to remain closed until at least Sunday.
As of 5 February 2020, the World Health Organization (WHO) reports that there have been 24,554 confirmed cases of coronavirus across 25 countries since the outbreak began on 23 January 2020. Governments all round the world are taking steps to contain the spread of the virus as well as to develop treatment, but China is bearing the brunt of it with 24,363 cases within its borders alone. As a result, the transport systems of at least 10 cities in the People’s Republic have been shut down and public gatherings are being discouraged. As a result, home-working rates have shot through the roof and there has been an inevitable impact on the manufacturing industry. Considering China is the world’s largest manufacturer of tyres by unit volume, what impact is the coronavirus having on the tyre industry?
UK car production fell -14.2 per cent in 2019, to 1,303,135 units, according to figures released by the Society of Motor Manufacturers and Traders (SMMT), with a -6.4 per cent drop in December rounding off a third year of decline. Output was affected by multiple factors, including weakened consumer and business confidence at home, slower demand in key overseas markets, a number of significant model production changes and a shift from diesel across Europe. Factory shutdowns in the spring and autumn, timed to mitigate expected disruption arising from the anticipated departure of the UK from the EU on 29 March and 31 October, also had a marked effect.
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