Long Road to Recovery: Supply Chain Troubles Impact Industry Relaunch

As predicted, supply issues are hampering the automotive industry’s relaunch. The good news is that practically everyone on the planet understood this would be a problem, but it’s undercut by the preliminary damage created by coronavirus lockdowns.

While automakers had sizable cash reserves with which to endure an economic shutdown, many suppliers did not. Small part suppliers have struggled with liquidity as larger equipment manufacturers try to figure out how to ramp up production and address their own supply headaches. As it turns out, shutting down an entire economic sector is a lot easier than restarting one after it’s been kneecapped.

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Subaru Extends Shutdown, Cites Unpredictable Chinese Supply Chains

Subaru is joining the long list of automakers closing shop on account of the coronavirus. Japanese production is being suspended at the automaker’s main plaint in the country’s Gunma prefecture from April 11th through the first of May. It’s also idling the Oizumi engine facility as it announces plans to extend the suspension of its U.S. facility in Indiana. The plant will now be idled through April 20th.

While some of the closures are due to social distancing obligations, the rest is down to parts allocation. Subaru is heavily reliant on components manufactured in China, and it’s still not clear how things are actually going there. What is clear is that Subaru (and plenty of other manufacturers) can’t do without its robust industrial sector operating at full strength. Subaru CFO Toshiaki Okada said in February that “it’s impossible to manufacture cars without China.”

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Dark, Contagious Clouds Gather Over the Auto Industry

With South Korea, Italy and Iran now reporting growing coronavirus outbreaks, it looks like this is going to be one of these long-haul illnesses that sends everyone to the store to stock on up on milk and bread. As you might have guessed, automakers have continued issuing warnings as the virus’ range continues to expand. On Wednesday, Toyota announced that its Japanese plans will undoubtedly be impacted by parts shortages over the next few weeks as Chinese suppliers remain dormant.

The worst of the outbreak is still located in Wuhan, where the virus is spreading out toward China’s coastal cities. Reliable figures for the number of people affected are difficult to come by. The Communist Party of China (CPC) and World Health Organization (WPO) both claim China had this one in the bag, with new cases always reported as “slowing” — an assertion you would be forgiven for doubting. COVID-19 seems anything but under control. This week, the Centers for Disease Control and Prevention told U.S. citizens to prepare for the worst as the stock market stumbled over fears of a global pandemic.

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Japan Readies Auto Industry for Coronavirus Complications

Yep, we’re still talking about the damned coronavirus. But how could we not, with the situation being obfuscated from all sides as the outbreak just seems to worsen? Both Japan and South Korea have reported their first deaths relating to the virus; meanwhile, the unsettling theory that 2019-nCoV was created in a Chinese laboratory has grown by leaps and bounds.

While the mainstream media has dismissed this as an unfounded conspiracy, loads of circumstantial evidence published by reputable sources leave one wondering. Our favorite is that the exotic meat market initially pegged as the disease’s point of origin was across the the street from (get this) a viral disease laboratory. Senator Tom Cotton (R-AR) has repeatedly pushed for the virus’ origin to be found, saying “We also know that just a few miles away from that food market is China’s only biosafety level 4 super laboratory that researches human infectious diseases,” only to be framed as an alarmist crank.

There was also a Chinese coverup (similar to SARS) that kicked off when police detained eight doctors in Wuhan for attempting to warn the public of a potential outbreak. The point here is that nobody seems ready to give (or even search for) answers in China. Naturally, this has left people confused and scared, rather than just scared.

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  • UncleAL wow ! nice Holiday gift from BMW.......
  • Aaron Bought one for my son. He loves it. 210k miles. Runs like a top. Does chug gas is really the only negative
  • Syke Felt that Corvette should have been removed from Chevrolet dealerships decades ago and become their own brand. At which point, however, that takes away the only thing Chevrolet has done right in the last fifty years. Dealers will see to it that'll never happen, or, at best, every dealership becomes a Chevrolet/Corvette franchise.And before anyone starts crying at the thought, it's certainly worked for Porsche . . . .
  • VoGhost First of all, more great performing vehicles are always welcome. But it really does point to a cancer within GM that their answer is always: 'more models.' They face an existential crisis from a competitor that grows at 50% annually and is stealing their market share. And they are doing it on the back of just two models. And while the commentators moan about where the CyberTruck is and when will they update their vehicles, Tesla now produces two of the top five vehicles on the planet. GM doesn't need more models - they need a few GREAT vehicles. Come on, GM! Show us a vehicle that can sell at 500K+ units, that isn't a third place pickup people only buy because the F-150 and Ram are sold out.
  • Ajla Everything should be branded as a Corvette, Mustang, or AMG.-Subaru Crosstrek AMG-Toyota Mustang GR86-Buick Shelby Corvette Encore AMG