According to a report published by Nikkei Asia on 25 December 2022, Tesla has suspended its production at its Shanghai plant due to rising cases of COVID-19 case. According to the sources and the notification obtained by Reuters, the US carmaker canceled the morning shift and instructed all workers at its most productive production center that they may begin their break. Reuters reported in November 2022 that Tesla intended to halt Model Y manufacturing at the factory from 25 December...

Volkswagen Group and  Bosch are keeping their employees on-site at their Chengdu plants after the Chinese city locked down the city to contain a COVID-19 outbreak, according to a report published by Automotive News Europe on 2 September 2022. The automaker's facility, which is jointly run with its local partner FAW, entered a so-called "closed loop system" to sustain output. Bosch has converted two of its Chengdu production facilities for power tools and automotive components to closed-l...

Laster Tech has announced that it resumed 90% production of LED lighting modules at its manufacturing facility in Shanghai, mainland China, Digi Times reported on 10 June. The plant had earlier scaled down production citing COVID-19 regulations and lockdowns in mainland China. According to the report, Hasco Vision Technology, Koito Automotive Lamp, and Great Wall Motors are among Laster's clients engaged in the new energy vehicle (NEV) market in mainland China. Significance: The compa...

According to a report published by PanDaily He Xiaopeng on 26 May 2022, the founder and chairman of Chinese carmaker XPENG Motors, said on social media regarding the gradual recovery of automotive supply chains in the midst of the persistent worldwide shortage of computer chips. He Xiaopeng stated that the company has estimated that a smart car's total number of chips surpassed 5,000, with hundreds of various types of chips. However, he pointed out that many of the chips affected by the ...

Aptiv has halted the shipment of components from a Shanghai plant that supplies Tesla and General Motors over the weekend after COVID-19 illnesses were detected among its employees, according to a report published by Reuters on 9 May 2022. Tesla's Shanghai manufacturing reopened on April 19 with the support of the city government, following a 22-day shutdown, the longest since the factory opened in 2019. The factory produces and exports Tesla's Model 3 and Model Y for the Chinese market. A...

onsemi has announced that the company halted operations at its global distribution center in China citing supply chain disruptions amid ongoing COVID-19 lockdowns, restrictions in Shanghai and several other major cities, DigiTimes reported on 22 April. According to the report, onsemi has initiated operations transfer to other regional distribution centers in Asia such as Singapore and Manila to ensure capacity balance impacted by lockdown in its Shanghai facility. COVID-19 lockdown in Sh...

Electric carmaker Tesla has resumed production activities at its Shanghai plant on Tuesday after suspending operations for over 20 days, Xinhua News Agency reported on 20 April 2022. According to the news report, about 8,000 employees have returned to work at Tesla's factory so far as it resumed operations. The factory was shutdown amid rising cases of COVID-19 in the region. Tao Lin, VP of Tesla told the news agency that the company is confident that China’s economy will bounce back soon a...

Taiwan-based semiconductor manufacturer TSMC is facing supply chain related challenges from the continued impact of COVID-19, according to a report published by Reuters on 4 April 2022. "Our suppliers are facing great challenges in their supply chain from the continued impact of COVID-19, which are creating labor, component and chip constraints in their supply chains, and extending tool delivery time for both advanced and mature nodes," Reuters cited TSMC CEO C.C. Wei as saying during a Thurs...

Chinese EV maker Xpeng may have to suspend car production in May if its component suppliers based in Shanghai and surrounding areas are unable to resume work, chief executive officer He Xiaopeng has warned, according to a report published by Reuters on 14 April 2022. A surge in new COVID-19 cases in Shanghai and surrounding regions in China have led the authorities to impose strict lockdowns that have resulted in shuttering of the factories. The Reuters report said that growing lockdowns to s...

Chinese premium electric vehicle (EV) maker NIO has suspended all its operations at its production facilities in China after the country's countermeasures to contain the recent surge of COVID-19 cases disrupted operations at its suppliers, according to a report published by Reuters on 9 April 2022. Due to the surge in COVID-19 cases in China, several suppliers of NIO, including those in Jilin, Shanghai and Jiangsu, have suspended production one after another and have yet to recover. As a resu...

Automotive supplier Aptiv has stopped some of the production in Shanghai manufacturing plant that supplies components to Tesla and General Motors joint venture, according to a report published by Reuters on 29 March 2022. The company said that it was following government orders and customers' production would not be impacted. Significance: Several cities and provinces in China have tightened their regulations in accordance with the country’s zero-tolerance policy of suppressing virus outbre...

Automakers Toyota, Volkswagen, and Apple’s major supplier Foxconn cease operations partially due to a new COVID-19 outbreak in China, according to a report by Reuters on 15 March 2022. A highly transmissible variant of Omnicron has triggered the outbreak across China. Mainland China reported 1,437 COVID-19 cases in total, out of which 1,337 cases were domestically transmitted COVID-19 cases with confirmed symptoms, the National Health Commission (NHC) said on 14 March. Toyota has halted pro...

Magna expects total sales for 2021 to be in the range of USD35.4–36.4 billion, compared with USD38.0–39.5 billion, owing to the expected decline in 2021 light vehicle production, it said in a press release on 20 October. “Adjusted EBIT margin is now expected to be in the 5.1% to 5.4% range, compared to 7.0% to 7.4% in our August outlook.” Significance: Magna said the primary reason for lowering the sales expectation of the year is the decline in vehicle production at OEMs in...

Manufacturer of electric vehicles (EVs) including delivery vans and pickup trucks, Canoo Inc. has launched cabin climate control with air purifying qualities, it said in a press release on 15 June. According to the company, the climate control technology is offered in a wellness package, which enhances interior air quality, attacks odors and kills viruses instantly, including COVID-19. The technology will come pre-loaded in the premium and adventure packages of its lifestyle vehicle, it said....

The Hyundai Motor Company has announced that it has resumed production activities at four out of its five manufacturing facilities located in Ulsan, South Korea. According to a report filed by news agency The Korea Herald on 11 June, the South Korean automaker had temporarily halted manufacturing operations at these plants in response to a disruption in parts supply at its supplier, Hyundai Mobis, caused by the ongoing COVID-19 pandemic. Significance: The disruption at Hyundai Mobis was th...

The Automotive Component Manufacturers Association of India (ACMA) forecasts that the auto component industry’s fiscal year (FY) 2020–21 revenue would decline 10–12% year on year (y/y) on account of COVID-19 led disruptions. The lobby body, however, is expected to release annual results on the industry’s performance during the last fiscal quarter later this year. “We have not yet prepared the actual numbers, but we expect that the auto parts industry has performed better than t...

Toyota and Honda resumed manufacturing operations at their plants in Malaysia on 18 January after the Malaysian government reversed previously announced restrictions to curb the spread of COVID-19, Nikkei reported. Significance: Last week, Toyota and Honda had temporarily suspended manufacturing operations at their plants in Malaysia after the Malaysian government imposed fresh restrictions on operations of nonessential industries to prevent COVID-19 infection. Toyota halted operations a...

Last week, mainland China imposed fresh lockdown in Shijiazhuang, in the northern province of Hebei, after sudden rise in new cases of the COVID-19 pandemic, CNN reported on 8 January. Municipal officials have banned outbound travel for about 11 million residents of Shijiazhuang, except for emergencies. Health officials have deployed thousands of health workers to conduct a mass testing drive. The move came after a total of 117 cases of COVID-19 were reported, including 67 asymptomatic c...

Toyota has suspended production at its plants in the UK and France from today (22 December) because of expected delays in parts shipment caused by reports of a mutated strain of the COVID-19 coronavirus spreading in the UK, Bloomberg reported. The reports have led many countries to close borders with the UK, affecting auto parts shipment. In the UK, the automaker will close its engine factory in Deeside, Wales, from today, and its vehicle assembly plant in Burnaston, ...

German auto parts supplier Continental has developed a partition panel made of plastic film for passenger car interiors that protects drivers and passengers against COVID-19 during transport, according to a company press release on 28 September 2020. The partition panel can be easily installed between the driver’s seat and the rear seat. It can be used on practically any vehicle model—from SUVs to sedans to compact cars. The material used in the protective film is a polished vinyl proven to ...

Osram has developed ‘Air Zing Mini’ air purifier that uses ultraviolet (UV) light to clear air inside vehicles, the company said in a press release on 17 September. The round device, measuring 7.5 cm in diameter, can be easily attached to the vehicle’s ventilation slats with a clip. The device operates quietly and illuminates the brand logo on the top in blue to show that it is working. The UV light of Air Zing Mini works at the wavelength of 360 to 370 nm and can remove harmf...

Most auto parts suppliers in Germany expect to return to pre-crisis level starting in 2022, according to the findings of a survey of automotive suppliers by the German Association of the Automotive Industry, published on 25 August. “The political measures to support businesses are indeed taking effect. However, we now expect a longer period of difficulty. Most suppliers expect to return to pre-crisis levels starting in 2022 at the earliest,” said Hildegard Müller, president, VDA. The sur...

Metal suppliers in Japan, including automotive aluminum and steel manufacturers, are expecting a gradual pickup in demand, driven by recovery in vehicle production after a sharp decline in April–June 2020 quarter due to the COVID-19 pandemic, Reuters reported on 17 August. However, these companies are not expecting demand to return to pre-COVID-19 level by the end of current financial year (31 March 2021). “Demand for steel used in automobiles will recover from the July-September quarter ...

ROHM’s unit ROHM Electronics Philippines is operating at a maximum rate of 50%, the company said in a press release on 5 August. ROHM said that the Philippine government put Metro Manila and neighboring provinces under modified enhanced community quarantine (MECQ) beginning 4 August through to 18 August due to the COVID-19 pandemic. The Philippines unit manufactures ICs, sensors/MEMS, transistors, diodes, and resistors. Significance: ROHM first announced the reduction of...

Japan Display plans to bring some automotive panel production back to Japan after the COVID-19 pandemic disrupted its supply chain, Reuters reported the Japanese display company saying on 10 July. As part of the plan, Japan Display will increase production at its Tottori plant in western Japan to supply automotive display panels to Japanese OEMs. “We could have spared opportunity losses if we had our production in Japan,” said Kazutaka Nagaoka, chief marketing officer of Japan Display, re...

Ford could shut down some of its factories in the United States next week due to potential shortage in engines sourced from its Chihuahua plant in Mexico, Reuters reported on 9 July, citing US ambassador to Mexico Christopher Landau. The US automaker has not been able to produce required number of engines at the Mexican plant due to 50% production cap on all manufacturing activities imposed by the state government to prevent spread of the COVID-19 pandemic. “They’re saying that they’r...

Automotive components supplier JTEKT India has announced that it expects the current business scenario to normalize during the second half of the 2021 fiscal year. In a notice filed by the company to the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on 29 June, JTEKT India stated that it expects profitability during the first quarter of this year (April–June 2020) to be adversely impacted due to the nationwide lockdown that was implemented in India owing to the COVID-19&nbs...

On 6 July, Igarashi Motors India Limited resumed operation at its Chennai plant in Tamil Nadu, India, with reduced manpower, the company said in a regulatory filing on 6 July. “The Management Taskforce of the Company has taken all measures to comply with the COVID Guidelines relating to safety, health, hygiene, reduced manpower, social distancing, and other precautionary measures required to be taken in the prevailing situation,” Igarashi said in the filing. Significance: Igarashi Motors ...

Romanian automotive components manufacturer Compa S.A. Sibiu is temporarily reducing operations in the country for two months due to the difficult economic context caused by the COVID-19 pandemic, according to a company statement filed with the Bucharest Stock Exchange (BSE) 1 July. The operations are being curtailed from 1 July until 31 August due to a decline in orders. Compa is suspending individual work contracts of employees working in departments for which there are no orders yet...

Auto parts suppliers in Mexico’s Puebla city are preparing to restart operations after receiving permits from local and federal authorities, according to a report by El Economista on 30 June. The general secretary of the Confederation of Mexican Workers (CTM) in Puebla, Leobardo Soto Martínez, confirmed that 30 auto parts assembly plants resumed operations from 30 June. Significance: These 30 plants resumed operations after an almost 12-week stoppage owing to the COVID-19 pandemic. Th...

Nanox has developed a new material that protects against SARS-CoV-2 virus (COVID-19 virus) and can also be used in the automotive industry, Automotive Business reported on 16 June. The material was developed in collaboration with researchers from the Institute of Biomedical Sciences of the University of São Paulo (ICB-USP), Universitat Jaume I, Spain, and the Center for the Development of Functional Materials (CDMF), and Innovation and Dissemination (CEPIDs) supported by Fapesp. “The tissue w...

The novel coronavirus disease 2019 (COVID-19) pandemic has severely impacted app-based new-mobility services such as car sharing, ride sharing, and ride hailing; since vehicles in such services are used by multiple people during a day, there is an increased possibility of getting infected by the COVID-19 virus. Even use of personal vehicles is not absolutely safe. Automakers are exploring various measures to keep vehicles disinfected, which vary from using more advanced air filter systems to ...

PPAP Automotive Limited has resumed operations at its Tamil Nadu plant in India in compliance with directives issued by the central/state governments and local administration, the company said in a BSE filing on 1 July. Significance: PPAP had earlier suspended operations at its Tamil Nadu facility from 19 June until 30 June due to lockdown announced by the state government to contain the spread of the COVID-19 pandemic. Before that PPAP Automotive had resumed operations at its Tamil Nadu faci...

Ridecell and Continental are collaborating to support ZITY who is offering free services to medical workers during the COVID-19 pandemic, the US-based mobility startup said in a press release on 24 June. ZITY is electric carsharing service by Renault Group. Ridecell’s Mobility Platform powers ZITY electric carsharing service in Paris, France. Continental offers its Key as a Service (KaaS) solution that allows service providers to securely access and start vehicles using an app. The sol...

Auto parts suppliers in Mexico’s Puebla city are preparing to restart operations as restrictions are being lifted, according to a report by Cluster Industrial on 17 June. Gabriel Covarrubias Lomelí, president of Mexico’s National Chamber of the Transformation Industry (Canacintra), recently confirmed that 40 of the 130 tier-1 suppliers in Puebla will resume operations from 22 June. Significance: Many suppliers also recently restarted automotive operations at a reduced capacity in other p...

Suprajit Engineering has informed that most of its plants in India are operating at limited capacity, according to its regulatory filing on the Bombay Stock Exchange (BSE) on 12 June. The company said most of the plants have resumed operations with a very low level of production and reduced workforce. Regarding international operations, Suprajit informed that its operations at Wescon’s facilities in the United States and Mexico are operating at around 50% capacity. Furthermore, operations at S...

India-based auto components manufacturer PPAP Automotive Limited has suspended operations at its Tamil Nadu facility from 19 June until 30 June due to lockdown announced by the state government to contain the spread of the COVID-19 pandemic, the company said in a regulatory filing on 19 June. Significance: The company has further said that duration of this shutdown will depend on directives from the state government. According to the company, “during this time, the abovementioned facility o...

The European Automobile Manufacturers Association (ACEA), the European Association of Automotive Suppliers (CLEPA), and the European Council for Motor Trades and Repairs (CECRA), which represent vehicle manufacturers, auto parts suppliers, and dealers, respectively, have requested the European Union (EU) for urgent support for the struggling automotive sector. “We are writing to you on behalf of the members of the associations representing the full automotive value chain in Europe. We wish to ...

Subros has said that it expects its profitability to be impacted in the first quarter of fiscal year (FY) 2021 as a result of a decline in turnover on the back of the COVID-19 pandemic, a company press release on 16 June read. However, the impact will be limited owing to the gradual ramp-up by customers and marginally compensated by cost optimization and reduction measures. The company added that while the figures cannot be quantified, all segments in the auto sector are expected to expe...

Igarashi Motors India Limited has suspended operations at Chennai plant in India from 19 June until 30 June due to the ongoing COVID-19 pandemic, according to a regulatory filing by the company on 17 June. Igarashi Motors India is mainly engaged in the production and export of permanent magnet DC motors for automotive sector, specifically for passenger cars, according to company website. Significance: Tamil Nadu has announced an intense lockdown in Chennai and three neighboring districts Kanc...

According to a notice provided by auto components manufacturer WABCO India to the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on 4 June, the company has restated production activities at its plants across India in a phased manner. The capacity enabled at the company’s plants located at Ambattur in Chennai, Mahindra World City in Chennai, Jamshedpur, Lucknow, and Pantnagar are 40%, 45%, 40%, 35%, and 5%, respectively. The company’s software center located in Chennai i...

Tamil Nadu has announced an intense lockdown in Chennai and three neighboring districts Kanchipuram, Chengalpattu, and Tiruvallur for 12 days starting 19 June to curb the sharp increase in COVID-19 cases. The state government move is expected to adversely impact the manufacturing operations of some automakers and suppliers in the coming weeks, the Mint reported on 16 June.      Significance: Chennai and adjoining areas is one of the manufacturing hubs in India wi...

Plastic Omnium has acquired two production lines for surgical masks in response to the COVID-19 pandemic, according to a company press release on 15 June. One of the line started in May in Plastic Omnium’s Ʃ-Sigmatech research and development (R&D) center in Lyon, France to meet the needs of its European sites, while the second will be installed at the end of June in Puebla, Mexico to cover the needs of North and South America. Each line’s production capacity is 1.5 million masks p...

Shiloh Industries, a global supplier of lightweighting and noise and vibration solutions, has announced that the company and certain of its subsidiaries have reached an agreement with their bank lenders on certain amendments to the company’s credit agreement, according to a company press release on 15 June. Among other things, the amendments provide certain covenant relief as the company continues to resume production across its global operations. “We are pleased to reach this agreem...

Switzerland-based automotive powertrain components supplier, Garrett Motion, has announced that has made amendments to its credit agreement with approval from its senior lenders. According to a press release issued by Garrett Motion on 12 June, the company has stated that the agreement now provides for covenant relief for up to 30 June, 2022, which has been done in order to support the company to overcome the adverse economic effects caused by the ongoing COVID-19 pandemic. As a result o...

Auto parts supplier Visteon expects global auto output to fall between 20–25% this year and warned it would be a couple of years before they returned to 2019 levels, according to a Reuters report on 11 June. “Even before COVID-19, the auto industry was slowing down globally and most notably in China, and COVID-19 has dealt a significant blow, pushing the industry to levels that have not been seen in a long time,” Visteon CEO Sachin Lawand said at a Deutsche Bank auto industry conference...

Canada-based Magna International has resumed operations at all of its plants in Mexico, according to a report by CE Noticias Financieras on 13 June. "All of our plants in Mexico have received government approval to restart production and substantially all are operational," the report said citing a company official. According to the company website, Magna operates 32 auto parts production plants in Mexico, with around 29,200 employees. Significance: Magna continues to actively monitor the situ...

Spain has an EUR3.7 billion (approximately USD4.16 billion) aid package in the works to revive its automotive industry, according to a report filed by Reuters on 14 June. The Prime Minister of Spain, Pedro Sánchez, announced on 14 June that this financial package will be used to promote investments and the purchasing of new vehicles from its automotive sector that has been hit badly by the COVID-19 pandemic. Significance: In addition to finances, this government aid package will repo...

The coronavirus disease 2019 (COVID-19) pandemic has caused severe disruptions in the global automotive supply chain. With no immediate solution in sight, federal governments around the world issued stay-at-home orders and called for the closure of non-essential businesses. This forced OEMs to suspend production operations in all major geographies as early as February 2020. According to IHS Markit, global light vehicle production declined by more than 11% month on month (m/m) in April. However, ...

The US-based automotive supplier Lear Corporation has added new equipment to its operations in Pine Grove, Pennsylvania, US, to produce up to 500,000 protective face masks per week, the company announced in a press release on 11 June 2020. "Adding production capacity at our Pine Grove facility is the most recent action we have taken to use our available manufacturing and technology resources to quickly and effectively address the health care crisis worldwide," said Ray Scott, Lear President a...

The South Korean government has joined hands with local automakers, including Hyundai Motor Group (HMG) and GM Korea, for guarantee funds to support the struggling auto parts suppliers in the country hit by the COVID-19 pandemic, The Korea Herald reported on 11 June. The Ministry of Transport, Infrastructure and Energy, the Ministry of Small Medium Enterprises (SMEs) and Startups, and the automakers signed an agreement for this in Seoul on Thursday. Under the agreement, HMG and GM Korea ...

Plastic Omnium has gradually reopened most of its manufacturing plants after suspending operations due to the COVID-19 pandemic, the company said in a press release on 10 June. According to the French supplier, 126 out of its 131 plants, located in 26 countries, have resumed operations. This represents almost all sites in Europe, Asia, North and South America, and Africa. Significance: Like several other automotive suppliers, Plastic Omnium was also forced to suspend operations...

German automotive components and system supplier, Continental, has warned of further cost saving measures and job cuts to tide over the current economic scenario. According to a report filed by German business news publication WirtschaftsWoche on 10 June, the company’s CEO has stated that Continental needs to save hundreds of millions of Euros in expenditures in order to overcome the fall in demand caused by the COVID-19 pandemic. Significance: Continental had also announced ...

Auto parts supplier Gestamp has partially resumed operations at its three Chattanooga plants in the United States, according to a report by Chattanooga Times Free Press on 26 May. The company said almost 1,000 workers across three sites are expected to return to work by mid-June to the end of July. Currently, nearly a third of the Chattanooga workforce is back, according to the report citing Susana Tello, Gestamp's North American communications director. Tello said, “How soon the Gestamp pl...

Minda Corp’s German subsidiary Minda KTSN Plastic Solutions GmbH (MKTSN) has filed for insolvency, the Indian supplier said in a regulatory filing on 9 June. “MKTSN has been operating in a challenging and competitive market in Europe. We truly left no stone unturned to improve the fortunes of MKTSN over the years however the onset of COVID-19 has rendered all our and MKTSN’s efforts in vain. The subsequent reallocating of resources is expected to add to shareholder value in the long run...

India-based Steel Strips Wheel Ltd (SSWL) said in a regulatory filing on 8 June that all its plants are currently functional following lockdown relaxations and that the company expects to reach 75% of pre-COVID-19 levels of production by September this year. In addition, SSWL expects alloy wheel capacity to hit close to 80–90% capacity monthly run rate by the October–December quarter contributing to a strong comeback by the company. The passenger vehicles and two-three wheeler segments are e...

Indian auto parts supplier Lumax Industries said in a regulatory filing on 1 June that the company expects the profitability for the fourth quarter of 2020 and the first quarter of 2021 likely to be adversely impacted due to the ongoing COVID-19 pandemic. Significance: The company informed that due to the lockdown since 23 March, and the partial reopening of facilities, profitability is likely to be adversely impacted. The supply chain of the company is also badly affected due to the global l...

The coronavirus disease 2019 (COVID-19) pandemic has significantly disrupted the global automotive industry, causing many OEM production plants and more than 300 supplier plants to stop operations around the world. This ecosystem disruption will impact more than just vehicle production, with research and development (R&D) and vehicle technology investment being key targets for budget reduction and strategy realignment. In April, the Automotive Supply Chain and Technology team at IHS Marki...

Foresight Autonomous Holdings has been developing a mass-screening solution for the detection of coronavirus disease 2019 (COVID-19) virus symptoms based on visible-light and thermal cameras, the company said in a press release on 5 June. “The COVID-19 pandemic has created new challenges for public safety, prioritizing the prevention of another pandemic outbreak as the world begins to resume normal activities. Our extensive experience with thermal imaging and AI can be invaluable when appli...

The Indian automotive suppliers’ industry body, Automotive Component Manufacturers Association (ACMA), has stated that the automotive sector in India could witness major job losses if demand remains weak owing to the effects of the ongoing coronavirus disease 2019 (COVID-19) pandemic. According to a report filed by news publication Economic Times on 7 June, automotive component manufacturers in India already have excess capacities in place and will have to trim the number of employees in or...

London Electric Vehicle Company (LEVC) is set to restart production at its electric vehicle (EV) production plant in Ansty, the United Kingdom today (8 June), the company announced in a press release on 3 June. The company stated that it will begin production in a phased manner and that it has put several measures in place to  ensure the safety and well being of all staff upon their return to work. This includes controlled entrance and exit procedures with thermal imaging, one-way syst...

German government has doubled its contribution to electric vehicle (EV) purchase subsidy to EUR6,000, up from EUR3,000, Reuters reported on 4 June. The subsidy is applicable to vehicles costing less than EUR40,000. The increase in subsidy for EV purchase is part of Germany’s EUR130-billion stimulus package for industries to recover from the impact of the COVID-19 pandemic. This is over and above the EUR3,000 subsidy car manufacturers, also grant. Significance: This is the second revisi...

When restriction measures were implemented to control the spread of the COVID-19 virus pandemic, which constrained passenger transportation, many service segments, including ride-hailing companies, felt a sudden and intensive drop in the demand for their services. As the situation has no precedent to serve as an example, how are these ride-hailing companies finding ways of surviving amid the chaos?  Global ride-hailing company Uber has been particularly adversely affected by the virus. I...

Meritor, Inc. has announced additional cost and liquidity actions in response to the ongoing COVID-19 pandemic, according to a press release on 3 June 2020. Meritor also announced its plan, subject to market and other conditions, to offer USD300 million aggregate principal amount of unsecured senior notes in a private placement to qualified institutional buyers. Additionally, the company announced restructuring actions that represent approximately an 8% reduction in global salaried positions....

Rolec Services has resumed production in the United Kingdom, the company said in a press release on 13 May. The company said that all employees were following various measures, such as social distancing and a robust hygiene routine. “The safety of our team is paramount. Therefore, we will continue to follow the guidelines as advised by the government,” Rolec said in a statement. Significance: Rolec EV is a UK-based electric vehicle (EV) charging infrastructure solution provider. The ...

US automotive tire manufacturer Cooper Tire & Rubber Company has announced that it has begun the process of restarting manufacturing operations at its production facility located in El Salto, Mexico. According to a press release issued by Cooper Tire on 1 June, the company stated that it has begun the process of resuming production in a phased manner at this plant. Other manufacturing plants of Cooper Tire located in the United States, mainland China, and Serbia have now resumed...

US-based electric vehicle (EV) startup has resumed work at its manufacturing plant in Illinois, in the United States, news website Electrek reported on 28 May. According to the report, lockdown has led to a delay in starting the production of R1T all-electric pickup truck and all-electric sport utility vehicle (SUV) R1S. However, production of its electric van, which is being built for Amazon, is on schedule. Significance: Rivian had to close down operations at the plant owing to the coronavi...

Yokohama Corp. of North America is restarting production at its Salem plant in Virginia, United States, from 1 June, ending eight weeks of being idled owing to the COVID-19 pandemic, according to a report by Tire Business on 29 May. Significance: Yokohama informed that it has implemented new safety procedures and protocols to ensure the health and welfare of its employees upon their return. All are based on the latest guidelines from the Centers for Disease Control and Prevention (CDC) and lo...

Autoliv has provided its latest updates on business and market outlook amid the COVID-19 pandemic, according to a company’s press release on 29 May. According to the Sweden-based supplier, the automotive industry has entered a start phase in most markets in recent weeks, however, the output remains low and volatile. Autoliv’s operations in these markets is developing in line with the market development. According to Autoliv, almost all OEM plants have resumed manufacturing operations...

General Motors (GM) and Ford are using fast-payment programs set up with financial lenders to help cash-strapped small suppliers survive production shutdowns caused by the COVID-19 pandemic, according to a Reuters report on 28 May. GM began its “Early Payment Program” in August 2019 with Wells Fargo & Co, and now is using it as a way to support suppliers during the pandemic, GM spokesman David Barnas was quoted as saying. Under this, a supplier can receive an earlier payment from...

Indian tiremaker CEAT has partially resumed operations at its plant in Mumbai, Maharashtra in India, according to a company filing with Bombay Stock Exchange on 27 May. The company has resumed operations with restricted movement of manpower as permitted by the concerned authorities, while taking all necessary steps to ensure sanitization, and protect the health of its employees. Significance: CEAT had suspended production on 24 March at all of its facilities in India due to the ongoing COVID-...

German auto parts supplier Bosch is gradually ramping up production activities at its plants in Romania after a temporary slowdown due to the COVID-19 pandemic, according to a company press release on 27 May. The company has put in place various protection measures for its employees in Romania. Significance: Bosch consolidated sales in Romania exceeded USD454 million in 2019 fiscal year, according to a company press release on 27 May. Total net sales, including sales of nonconsolidated c...

Automotive components and systems supplier, ZF Friedrichshafen, has announced that it plans to axe up to 15,000 jobs, which represents nearly 10% of the company’s staff, by the year 2025 in response to falling demand across the globe. According to a report filed by Automotive News on 28 May, an internal company memo states that half of the job cuts would happen in the company’s home base of Germany. Operations at many of the company’s plants were placed under temporary suspension due to...

The coronavirus disease 2019 (COVID-19) pandemic has profoundly disrupted all aspects of the automotive supply chain. Global efforts to control the spread of the virus have impacted both demand and supply, and in turn the industry cumulating in a sharp decline in production. Both automakers and automotive supplier manufacturing plants are either working on a lesser production capacity or have temporarily suspended manufacturing activities. Additionally, a combination of stringent federal laws, e...

Automotive supplier Marelli has announced that it has secured additional funding from its shareholders and leading banks. According to a press statement released by Marelli on 27 May, the company has stated that it secured JPY130 billion (USD1.21 billion) from KKR, its shareholder, and its leading Japanese banks. This has been done to provide a higher level of long-term security and flexibility for the company in case the ongoing COVID-19 pandemic results in an extended economic downturn...

German automotive parts supplier Bosch has received the government approval in Mexico to restart operations, according to a Reuters report on 28 May. “We have already received approval from the health authorities to reopen, which we will do gradually and with staggered shifts in all our locations,” Bosch said in a statement. “In this first stage, we are starting with 25% on average of our installed capacity throughout the country.” Significance: Bosch operates 12 manufacturing plan...

India-based Minda Industries has informed about the impact of the ongoing COVID-19 pandemic on the company. According to a regulatory filing on 27 May, the company said that it has now received approvals to start production at all manufacturing plants in India with limited staff and capacity. Accordingly, all its Indian facilities are currently operating at partial capacity and production will be enhanced in a phased manner, based on government directives and customer demand. The company further...

Mcity is hoping to open its test facility in the coming weeks after it was shut due to the COVID-19 pandemic, it said in a press release on 26 May. Located at the University of Michigan, US, Mcity says it is well-positioned to "make connected and automated vehicle testing safer and more efficient for researchers and industry partners using automation and simulation". Significance: Mcity is a test center which operates "the proving ground for testing the performance and safety of connecte...

General Motors’s (GM) autonomous car unit Cruise is laying off nearly 8% of its workforce to cut costs amid the COVID-19 pandemic, according to a Reuters report on 14 May. Cruise will offer affected workers financial support to help them transition, plus healthcare coverage through the end of the year, CEO Dan Ammann wrote in a staff memo. Cruise spokesman Milin Mehta confirmed the cuts. “In this time of great change, we’re fortunate to have a crystal clear mission and billions in the bank...

Bharat Forge is resuming operations in a phased manner at Mundhwa and Chakan plants in India after obtaining permission from the respective local district authority, the company said in a regulatory filing on 25 May. The company is following all the guidelines stipulated by the Ministry of Home Affairs of the Government of India such as a mandatory safety check and training of personnel on physical distancing, health, and hygiene. Significance: Bharat Forge had suspended all operations at its...

The European Automobile Manufacturer Association (ACEA), European Association of Automotive Suppliers (CLEPA), European Council for Motor Trades and Repairs (CECRA), European Tire and Rubber Manufacturers’ Association (ETRMA), European business organisations, and the trade unions for the sector have called on the European Commission for a bold recovery plan for the struggling automotive sector in the European Union (EU) due to the COVID-19 pandemic. In a joint press release, these associa...

France-based tire manufacturer, Michelin, has announced that it will be restarting its facilities located in Mexico. According to a report filed by news agency Reuters on 26 May, two of Michelin’s manufacturing plants located in Mexico, which had been on temporary lockdown due to the COVID-19 pandemic, saw productions operations resume on 25 May. Significance: According to the report, Michelin stated that the Mexican government took the decision to classify the automotive ind...

The auto part industry club under the Federation of Thai Industries (FTI) is conducting a feasibility study on repurposing local auto parts manufacturing plants to build medical devices or aircraft parts, the Bangkok Post reported on 26 May. “The club wants to support its members adjusting their businesses to survive and keep operating in the long term,” Pinai Sirinakorn, chairman of the FTI club, was quoted as saying by the English daily newspaper.  According to Sirinakorn, the grou...

Falken Tyre India has resumed operations in Gurgaon, according to a company press release on 22 May. The company said that it is one of the first few foreign tire manufacturers to have been granted the official approval to resume its operations on 19 May. Commenting on the resumption of its operations, Satoru Ushida, managing director of Falken Tyre India Pvt. Ltd. said, “We have been very vigilant in monitoring the governmental guidelines and our emphasis is on the safety of our emplo...

MARELLI has announces a number of new initiatives in Japan to fight the ongoing COVID-19 pandemic, the company press release said on 22 May. These efforts include production of personal protective equipment (PPE) for healthcare workers in Japan using MARELLI’s expertise, facilities, equipment, and professional skills. The company began production of face shields on 24 April, utilizing its manufacturing know-how and technologies, including the use of existing production lines, and 3D print...

HELLA has specified its outlook for fiscal year ending 31 May 2020 based on current information and circumstances regarding the COVID-19 pandemic, the German supplier said in a press release on 25 May. The company now expects group sales in the range of EUR5.7 billion (USD6.2 billion) to EUR5.8 billion and an adjusted operating profit margin (adjusted EBIT margin) of approximately 4%. The company will announce the final results for the fiscal year (FY) 2019/2020 on 14 August 2020. A...

As the world is adapting to live the “new normal,” the widespread economic impact of the coronavirus disease 2019 (COVID-19) virus is becoming clearer by the day. For industries across the world, the key challenge is not just to fight the pandemic but also to manage its social and economic consequences. Finding the right balance and measures to respond will be the key for the already stressed automotive industry where the crisis has massively hurt liquidity, supply chain, production, and dem...

General Motors has announced that it will be reopening its manufacturing facilities in Mexico. According to a report filed by news publication Detroit Free Press on 21 May, the company has completed regulatory health and safety procedures and has now received approval from the Government of Mexico to resume manufacturing operations. General Motors will restart operations at three of its assembly facilities as well as its powertrain and stamping plants in a phased manner from 21 May onward. Th...

Labor shortage on the back of mass exodus of migrant labor from industrial belts may prove to be a challenge in scaling up operations, Sunjay Kapur, chairman of India-based Sona Comstar, was quoted as saying in a report by ETAuto on 21 May. The Indian supplier has started operations at Indian plants earlier in May. The company’s workers available locally enabled it to resume manufacturing facilities in Haryana and Chennai in Tamil Nadu. “Fortunately, we have a lot of people living lo...

German automotive components and systems supplier ZF Friedrichshafen AG has announced that it has strengthened its liquidity in order to provide it with increased financial flexibility to overcome the challenges caused by the ongoing COVID-19 pandemic. In a press statement issued by ZF on 20 May, the company has stated that it has increased its liquidity with a new EUR1.35 billion (USD1.48 billion) syndicated credit facility. This is in addition to in addition to the existing EUR3.0 bill...

Bridgestone Corporation has announced a temporary phased shutdown of its plants in Japan owing to the market situation and decline in the demand, according to a company press release on 20 May. The company has temporarily halted production at Kurume, Nasu, and Hofu plants located in Fukuoka, Tochigi, and Yamaguchi, respectively, from 28 May to 1 June; all three plants make tires for passenger cars. In addition, manufacturing is suspended at Hikone in Shiga, and Tosu in Saga, passe...

Mahindra Electric, the electric vehicle (EV) business unit of the Indian automaker Mahindra & Mahindra (M&M) has resumed operations in Bengaluru, Karnataka, India, ETAuto reported on 18 May. The EV maker will initially operate at 30% capacity before gradually increasing this up to 50%. “As we resume operations, the safety of our employees at all the Mahindra Electric locations remains the top priority for us. We have taken care of implementing all the instructions of the Central and...

German automotive parts and components supplier, Continental, has taken steps to further reinforce its liquidity in light of the unstable market conditions brought on by the effects of the coronavirus disease 2019 (COVID-19) pandemic. According to a press release issued by Continental on 19 May, the company has announced that, as a precautionary measure, two bonds amounting to a total volume of EUR1.5 billion (USD1.64 billion) have been placed in the capital market. As announced earlier this ...

The utilization of 5G is just getting to a nascent stage, but the disruption caused by the coronavirus disease 2019 (COVID-19) pandemic across the supply chain has already begun to impede its progress. The 3rd Generation Partnership Project (3GPP), an organization setting global mobile network standards, recently announced a three-month delay in the timeline for completing two critical releases for 5G specifications. A face-to-face meeting of people responsible for the technical specifications h...

Connected vehicle data specialist wejo has partnered with eight states in the US to use car data to track the public’s movements during the lockdown due to the coronavirus disease 2019 (COVID-19) pandemic, the Telegraph reported on 18 May. wejo said that it has signed seven new public sector clients in April 2020 and was providing anonymized data to eight states in the US “We’re helping DoTs understand the fundamental changes of behavior during COVID-19. Are people still visiting the be...

Auto components supplier Munjal Showa Ltd has resumed partial operations at its manufacturing facilities located at Gurugram, Manesar, and Haridwar following relaxation given by the government for the ongoing third phase of lockdown, according to a regulatory filing by the company with BSE. The company is engaging minimum manpower and resumed operations in the facilities after obtaining requisite permission from government authorities and district administrations, as per the guidelines issued by...

JTEKT has received conditional permission by the concerned government authorities to resume operations at its plant located in Chennai, according to a regulatory filing by the company with Bombay Stock Exchange on 16 May. Significance: The company will ramp up its production activities based on customer demand, and it will also be adhering to all the requisite guidelines mandated by the National Directives for coronavirus disease 2019 (COVID-19) management. This will include thorough sanitiza...

Panasonic has resumed battery cell production at Tesla’s gigafactory in Nevada, US, news website The Verge reported on 15 May, citing information from the company. However, Panasonic will keep the operations at Tesla’s Buffalo, New York, solar panel factory suspended. “We will not restart manufacturing this Saturday, 16 May,” Mark Shima, president of Panasonic Solar North America, wrote in an email sent on 14 May. “The new target date depends on the COVID-19 situation of Erie Coun...

Linamar Corp is focused on resuming production at its factories in North America, CEO Linda Hasenfratz stated, as quoted by Bloomberg on 15 May. The Canada-based company has established safety protocols based on screening, masks, and establishing physical barriers to keep people apart, as well as cleaning, hygiene, and contact tracing, the report said. The report added that Linamar is continuing to cut costs, coming up with CAD12 million (USD8.5 million) in two weeks. Capital expenditures a...

Several automotive parts and components suppliers based in India have begun to restart operations in a phased manner. These companies’ production facilities had been put on temporary suspension due to the nationwide lockdown imposed by the Indian government during late March 2020 owing to the coronavirus disease 2019 (COVID-19) pandemic. Suppliers including Endurance Technologies, Suprajit Engineering, Hi-Tech Gears, Subros Ltd., Automotive Stampings and Assemblies Limited and Rico Auto Ind...