www.varchev.com

Jaguar, Fiat Chrysler, Toyota, Hyundai, Volvo, Peugeot, Hyundai and Nissan are already experiencing the effects of the coronavirus on their backs

Jaguar Land Rover is flying components out of China in suitcases as it races to prevent its UK plants from closing by the end of this month.

Sir Ralf Speth, chief executive of the UK’s biggest carmaker, said the company’s British plants were “safe for this week” and the week after, but faced difficulties sourcing parts from China in the following weeks, which represented “a risk for overall production”.

“We have flown parts in suitcases from China to the UK just to make sure that we have got the right parts,” he said, adding that last week the company was missing 38 key components.

Transporting parts by air is quicker than sea freight shipments but more expensive and only possible with far smaller volumes than carmakers conventionally need.

JLR is the latest company to resort to rushing parts out of China due to supply chain disruption, with smartphone maker Samsung flying electronic components from China to its factories in Vietnam.

The manufacturer, which has three factories in the UK, joins a growing list of carmakers warning of their supply chains being hurt by the deadly coronavirus, which has spread around the world from Wuhan in China and killed nearly 1,900 people.

In early February, Fiat Chrysler said that one of its European plants would be forced to halt production in a matter of weeks as it struggles to source key parts from Chinese suppliers.

Toyota, Hyundai, Volvo and PSA, the owner of Peugeot, are among the carmakers to have disclosed that coronavirus is disrupting their supply chains or risks doing so. Hyundai and Nissan have closed their sites in South Korea.



Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance