What Is The Impact Of Coronavirus On The Supply Of Car Parts?

Car Parts, Coronavirus, OEM Parts

The threat of Coronavirus is expected to have a direct and significant impact upon the supply of parts for the automotive industry, with delays experienced for orders made from the Far East and China. This impact is only expected to increase as the virus spreads to new parts of the world on a daily basis.

Attempts to stem the spread of the virus in China has resulted in a 92% domestic reduction in car sales, as well as widespread factory shutdowns and slows in the production of automotive parts. This has had a knock-on effect for Ford, Jaguar, Land Rover, Nissan, Toyota, Vauxhall and many more manufacturers sold in the UK, that rely upon parts and components manufactured in China.

The true impact of Coronavirus on the parts supply chain is slowly emerging. This was previously difficult to gauge as parts are typically containerised and shipped from the Far East as much as one month ago. Many Chinese factories producing parts have been closed since Chinese New Year. Jaguar Land Rover (JLR), the UK’s biggest carmaker with three factories producing 400,000 vehicles a year, has resorted to extreme measures of flying urgent parts in suitcases to combat supply issues.

Factory shutdowns have not only impacted vehicle manufacturers, but also those supplying new OEM parts to retail and trade. With increased travel and trade restrictions, obtaining parts to meet consumer demand is becoming increasingly difficult. This has resulted in increased delays and attempts to source parts from alternative suppliers, based outside of China and the Far East.

A combination of Coronavirus, Brexit and recent storms wreaking havoc on the UK has created increased demand for green OEM parts - warehoused and delivered from UK locations - as a solution to combat supply delays, or simple lack of availability.

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