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.

In what ways does the current demand situation differ from the past outbreak in 2016?

What are the expected trends in auto sales and dealership traffic according to the text?