Production at Jaguar plant could falter

JLR among automakers hit by parts shortage caused by virus disruption

Production could stop in a matter of days at United Kingdom automaker Jaguar Land Rover because of a parts shortage caused by the ongoing outbreak of the novel coronavirus.

The company, which is also known as JLR, imports parts from plants in Hubei province, which is a major manufacturing hub and at the center of the virus outbreak. Manufacturing facilities in the city have ceased production while workers stay at home in quarantine in attempts to stop the virus spreading.

The Reuters news agency says the company could run out of important parts in two weeks. The Financial Times says JLR was short of 38 key components last week.

JLR is the UK's largest automaker and operates three plants in Britain that produce around 400,000 vehicles a year. The company also operates a plant in China that is closed because of the outbreak, Chief Executive Ralf Speth told reporters. That factory is set to reopen on Feb 24.

"We are safe for this week and we are safe for next week and in the third week we have ... parts missing," Speth said at the official opening of the National Automotive Innovation Center in Coventry, central England. "We have flown parts in suitcases from China to the UK."

The British company is not the only automaker struggling to find parts. Fiat Chrysler temporarily halted output at its Serbian plant last week. And labor union officials in the United States believe General Motors may have to cut production because of shortages. Digger manufacturer JCB has also cut production. And Hyundai, Peugeot, Toyota, and Volvo have also said the virus has impacted their supply chains. Nissan has closed a production site in South Korea.

Speth also confirmed the outbreak has hit JLR's bottom line in China, with sales understandably plummeting.

" (Sales in China have) completely stopped. It's zero," Reuters quoted him as saying. "You don't know whether the economy will catch up or whether this kind of loss is just a loss."

The BBC noted that the virus-caused closure of many factories in China has also had a significant impact on the global supply chains of other sectors. Apple warned on Monday that the disruption will dent the supply of iPhones. And smartphone maker Samsung has said it is flying electronic components from China to its factories in Vietnam because of shipping difficulties.