highly anticipated Bronco off-road SUV<\/a>\u00a0this spring.<\/p>\n“I’ll acknowledge we’ve been imaginative in how we’ve managed the issue so far, including the supply side in terms of specific forms they’ve taken,” Ford spokesman T.R. Reid said.\u00a0“We can fulfill the needs of our customers. Second to keeping our people safe, that’s the top objective for us.”<\/p>\n
About three-quarters of the dollar value of auto parts made in China that are imported to the United States are used to make vehicles, according to the Center for Automotive Research. The largest categories of imports were\u00a0wheels, brakes and brake parts.<\/p>\n
But “it doesn’t matter what we get from China because\u00a0everyone else gets things from China,” said Kristin Dziczek, vice president of the Center for Automotive Research. “It’s a very layered and integrated global supply chain.”<\/p>\n
The outbreak in China began just before the Lunar New Year holiday, a build-up in production prior has helped to reduce disruption for now, Dziczek said. It can take a month for two for shipments to reach North America \u2014 about as much inventory as automakers typically have on hand. That is compared to just two weeks to Japan and South Korea, causing early shutdowns at Hyundai Motor Co. and Nissan Motor Co. Ltd. there.<\/p>\n
“That buffer is drawing down,” Dziczek said.\u00a0“It’s going to start to bite really soon.”<\/p>\n
And with greater consolidation of vehicle platforms, more factories are reliant on the same suppliers, causing a greater multiplier effect.<\/p>\n
The result, experts predict, will be a reverse in trend of suppliers moving global production to China.\u00a0In the 1990s, suppliers pivoted to China from producing in Southeast Asia as China’s economy continued to grow\u00a0in the 2000s and 2010s. But trade tensions and two consecutive years of decreasing demand for automobiles there are changing the picture. Coronavirus is accelerating the change, ZoZo Go’s Dunne said.<\/p>\n
“The urgency around that has just been amplified as manufacturers and suppliers have found with\u00a0the events unfolding in China,” Dunne said.\u00a0“Without sources outside of\u00a0China, they\u2019re extremely vulnerable.”<\/p>\n
That likely means China production is moving up the value chain with what is made there staying there, said Paul Stepanek, owner of Complete Manufacturing and Distribution, an Asian consulting firm. Global parts production could return to other parts of Southeast Asia like India, Malaysia, Thailand and Vietnam.<\/p>\n
“That,” Dunne said,\u00a0 “is a big new strategic direction for them.”<\/p>\n","protected":false},"excerpt":{"rendered":"
The real impact of the coronavirus outbreak in China on the North American auto industry\u00a0soon could be felt as delays from the shipment of parts catch up to automakers \u2014 a disruption that could lead suppliers to\u00a0reverse a trend of consolidating production in China. As automakers cancel vehicle showings and implement employee travel restrictions, the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/24958"}],"collection":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/comments?post=24958"}],"version-history":[{"count":2,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/24958\/revisions"}],"predecessor-version":[{"id":24960,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/24958\/revisions\/24960"}],"wp:attachment":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/media?parent=24958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/categories?post=24958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/tags?post=24958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}