BFF-42 Coronavirus could close European factory: Fiat Chrysler

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Coronavirus could close European factory: Fiat Chrysler

MILAN, Feb 6, 2020 (BSS/AFP) – Fiat Chrysler could halt production at a
European factory because of supply problems from China due to the coronavirus
outbreak there, its boss told Thursday’s Financial Times.

The prospective closure would be the first for a European car
manufacturer.

CEO Mike Manley said that four Chinese suppliers were affected by the
coronavirus outbreak, including one “critical” supplier.

The Italian-US company would know within two to four weeks “whether supply
will be halted for one of our European plants”, Manley said.

Financial director Richard Palmer said Thursday that the impact of the
coronavirus outbreak on the company “cannot yet be calculated”.

Japan’s Toyota and Germany’s Volkswagen have both suspended some
production in China because of the coronavirus outbreak.

South Korea’s Hyundai said on Tuesday that it would stop domestic
production because of a lack of Chinese parts due to the health crisis.

FCA on Thursday announced net earnings down by nearly a fifth last year as
sales slowed, although both rose in the final quarter.

The firm, which is set to merge with France’s Peugeot-Citroen to create
the world’s third-largest automaker by revenues, saw net earnings fall 19
percent to 2.7 billion euros ($3.0 billion) in 2019.

BSS/AFP/FI/ 1012 hrs