China's Coronavirus Battle Is Disrupting The Global Auto Industry

The global auto industry faces challenges due to part shortages, heavily relying on just-in-time supply chains. China's lockdowns to control the coronavirus have disrupted these chains, affecting production worldwide. Hubei, a key automotive hub, has been significantly impacted. The US imports a substantial amount of auto parts, but no production slowdowns have been announced yet. The future depends on how quickly Chinese factories can resume operations, balancing public health and economic needs.

What is a major vulnerability of the just-in-time supply chain model used by the automotive industry?

• It relies on a steady stream of parts with little room for disruption.

• It is not dependent on international suppliers.

• It is highly flexible and adaptable.

• It requires a large inventory of parts.

Which Chinese province, a hub for automotive manufacturing, was significantly affected by lockdown measures?

• Zhejiang

• Guangdong

• Hubei

• Sichuan

How much did China export in car parts to the US last year?

• $15.6 billion

• $60.8 billion

• $200 billion

• $155.8 billion

What is the potential consequence for US automotive plants if the supply chain issues persist?

• Increased production

• No impact on operations

• Suspension of operations due to lack of parts

• Expansion of manufacturing facilities

What is China trying to balance while attempting to restore normalcy in the automotive industry?

• Environmental concerns and industrial output

• Public health and public welfare

• Economic growth and technological advancement

• International trade and domestic production