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Coronavirus : the impact on the automotive industry

PSA Wuhan Coronavirus

Since the start of the CORONAVIRUS epidemic in China, especially in the city of Wuhan, this Chinese metropolis of 11 million inhabitants where the first cases were recorded, following this, the city is completely closed and evacuated. This measure, which proved to be more than necessary since today more than 132 deaths and 7,500 cases infected with the Coronavirus have been recorded, has had serious consequences on the Chinese and world economy, since the city Wuhan is home for a lot of factories and offices of big companies, such as Toyota, Ford, Renault, PSA, Nissan, Honda and GM, with also some major automotive suppliers such as VALEO, Saint-Gobain and Faurecia. Several of these companies have taken drastic measures: repatriation of nationals and closure of factories.

Four of the car factories installed in Wuhan have announced their closings, like General Motors, Nissan, Toyota and Ford, and this for an unspecified deadline, while PSA set up at the beginning of the week a crisis unit between Wuhan and Paris to determine the impact that the current situation could have on production, and evacuated 38 expatriates, in collaboration with the Chinese authorities and the French consulate.

Also affiliated with Dongfeng, Renault, which has two factories in Wuhan, as well as a Research and Development center, where 2,000 employees work, closed one of its factories until February 10.

Honda has repatriated some of its Japanese expatriates and General Motors (owner, with SAIC, of a factory in Wuhan), closed its factories until February 2.

Ford and FCA have not announced any action yet, but are monitoring the situation closely.

About CoronaVirus 2019-nCoV *

Coronaviruses are a group of viruses that cause diseases in mammals and birds. In humans, the viruses cause respiratory infections which are typically mild including the common cold but rarer forms like SARS and MERS can be lethal. In cows and pigs they may cause diarrhea, while in chickens they can cause an upper respiratory disease. There are no vaccines or antiviral drugs that are approved for prevention or treatment.

Coronaviruses are viruses in the subfamily Orthocoronavirinae in the family Coronaviridae, in the order Nidovirales. Coronaviruses are enveloped viruses with a positive-sense single-stranded RNA genome and with a nucleocapsid of helical symmetry. The genomic size of coronaviruses ranges from approximately 26 to 32 kilobases, the largest for an RNA virus.

The name “coronavirus” is derived from the Latin corona, meaning crown or halo, which refers to the characteristic appearance of the virus particles (virions): they have a fringe reminiscent of a royal crown or of the solar corona.
* définition from wikipedia

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