How Coronavirus Is Weighing on South Korea’s Auto Industry

The video discusses the disruption in the global supply chain, initially caused by issues with wiring harness supplies from China, which have been resolved. However, new disruptions are arising from a local plant in Korea linked to the SHINCHEONJI religious group, affecting auto OEMs and suppliers. The production in Daegu, a significant supply chain hub, is impacted, with potential production halts and revamps expected. On the demand side, auto sales are suffering due to fears of infection, with showroom traffic dropping significantly. The situation is compared to the 2016 MERS outbreak, with a faster spread but lower fatality rate, affecting demand until at least April.

What was the initial issue in the global supply chain that has been resolved?

• Shortage of semiconductor chips

• Wiring harness supply from China

• Transportation delays

• Lack of raw materials

Which city is highlighted as a significant supply hub affected by the disruptions?

• Daegu

• Incheon

• Busan

• Seoul

How long is it estimated to take for production to normalize after the disruptions?

• Three weeks

• Four weeks

• Two weeks

• One week

What is a major factor causing a decline in auto sales according to the transcript?

• Economic recession

• Fear of infection

• High fuel prices

• Increased competition

How does the current situation compare to the 2016 MERS outbreak in terms of infection spread?

• The current infection is less contagious

• The current infection spreads slower

• The current infection spreads faster

• The spread rate is the same