Ten days before the announcement, word came that Nissan would stop part of its Kyushu plant. The Nikkei newspaper reported on 10 February 2020 that two production lines would halt from 14 February, with another line, one that builds mostly export cars, following on 17 February. Parts from China had become hard to get. Around 3,000 vehicles were at stake, and Nissan became the first automaker to pause a plant in Japan because of the outbreak.
On 20 February, Japan’s industry and government answered with a joint body. The Japan Automobile Manufacturers Association, the Japan Auto Parts Industries Association and the Ministry of Economy, Trade and Industry announced a council called the New Coronavirus Countermeasures Automobile Council. Its members are carmakers, parts suppliers and officials.
What the council will do
First comes information sharing, so everyone has the same picture of how the supply chain is holding up. After that, the group is to study countermeasures. The Japanese trade site Car Watch reported that the agenda covers disease prevention, shared problems in supply and logistics, and government policy. If the disruption drags on, members will also discuss cash-flow support and other aid.
The ministry gave its reasons plainly. The effects are not confined to one region, so many companies could be hit. Nobody can say when it will end. And talks with Chinese authorities need government-level involvement. In the government’s words, automakers, component makers and officials will work “together to ensure rapid response” to news from the industry.
A shutdown that kept stretching
The pressure came from China. Holiday shutdowns at auto plants there, including plants run by Japanese manufacturers, had been extended because of the virus, which by then had passed 75,700 cases and 2,130 deaths. Some factories were trying to reopen. Others stayed shut. Hubei province, home to Wuhan, had asked companies not to restart work before 11 March, more than two months after the post-Lunar New Year restart date.
The worry was not limited to Japan. In South Korea, Hyundai, Kia and Renault’s RSM unit had already announced closures citing missing parts from China.
Toyota told CNBC on the day of the announcement that its Japanese operations had not been affected, though a spokesman declined to comment on the council. Honda and Nissan did not immediately reply to questions about their plants or the new group.
Sources
- Japan Creates Task Force To Address Coronavirus Impact On Auto Industry (CNBC, reposted on JAPAN GATE)
- 自工会、部工会、経産省が「新型コロナウイルス対策検討自動車協議会」を設置 (Car Watch)
- Nissan to temporarily halt production at Japan factory due to coronavirus – Nikkei (Reuters)
