Toyota told its China plants to stay dark. On Jan. 29 the company said it would halt operations there until Feb. 9, and that it would look again on Feb. 10.
“Given the various factors including the guidelines by the local and regional governments and parts supply situation, as of Jan. 29, we have decided to halt operations in our plants in China until Feb. 9,” Toyota spokesman Maki Niimi said. “We will monitor the situation and make further decisions on operations from Feb. 10.”
General Motors followed. The New Economy reported that GM would extend its Lunar New Year plant closures in China to Feb. 9, matching Toyota. GM is the largest U.S. automaker in China, and it has also restricted staff travel to the country.
Why the lines stopped
The virus was first identified in Wuhan, a major manufacturing hub. By Jan. 30 China had 7,711 confirmed cases and 170 deaths, and at least 71 more cases had turned up elsewhere. Wuhan was under lockdown, and other parts of China had followed.
That matters on a factory floor. A wide range of parts goes into a single car, and lockdowns choke the supply of them. Local officials in the Shanghai area had barred companies from reopening before Feb. 9.
Toyota has no employees in Wuhan. On the direction of Japan’s foreign ministry, it also barred staff from traveling to Hubei province, and it told its people in China to avoid unnecessary trips.
Other companies pull people out
Honda and PSA Group, the owner of Peugeot and Citroen, took their employees out of Wuhan and began weighing production delays. PSA said it planned to evacuate its French staff and their families from China. Nissan was working to send all of its employees there home to Japan.
Fiat Chrysler and Ford were considering travel limits like GM’s.
The tech sector moved too. Facebook was the first major U.S. firm to tell staff to avoid traveling to China, and it asked those who had been there to work from home. Amazon and Microsoft told employees to work from home or extend their holiday. Apple said the outbreak worried it, given how many of its products are made in Chinese factories.
Many carmakers were still waiting on Chinese authorities for a firm plan on lockdowns and for guidance on how to keep operating.
Sources
- Toyota To Halt Production As Coronavirus Spreads
- Tech firms shut down Chinese offices as coronavirus spreads
Sources
- China coronavirus: Death toll rises as disease spreads
- Toyota To Halt Production As Coronavirus Spreads | Forum
