Auto Manufacturers Start Flying in Parts as Virus Threatens Supply Chain
Auto parts shortages on everything from electronics to brake pads could soon hit North American vehicle factories due to the coronavirus outbreak
Source: The Wall Street Journal
Last week, union officials flagged the riskof parts shortages at automotive manufacturing plants in Michigan, Indiana and Arlington, Texas. Those factories so far hasn’t been affected, a company spokesman said.
The auto industry is preparing for supply-chain problems from the coronavirus outbreak in China to soon hit vehicle production in the world’s healthiest car market: the U.S.
Automotive suppliers are warning car companies they could run out of certain parts used in North American factories in coming weeks, with particular concern over potential shortages of electronic components, industry executives and attorneys say. Hoping to stave off factory work stoppages, some manufacturers have taken the unusual and costly step of flying.