Auto parts supplier giants Bosch and Continental to suspend production in Europe

In order to curb the spread of the coronavirus, automakers have suspended production in North America and Europe, which has also brought a lot of trouble for the component suppliers.

Bosch GmbH, Plant Blaichach/Immenstadt, Germany

Auto companies’ factories have closed as demand has fallen, and European component suppliers have also begun to suspend production. Just a few days ago, most of the mainstream suppliers said that they would continue to operate the factory.


In the afternoon of March 18th local time, auto parts supplier giants Bosch and Continental said they would suspend all or part of their production work in order to cope with falling demand, supply chain bottlenecks and protect the safety of employees. Bosch said it would suspend work or reduce production at its French, Italian and Spanish plants. Continental only said that it would suspend production at its factories, but did not specify when the factories would stop.

In addition, Plastic Omnium also said that it will suspend production, while tire manufacturers Pirelli and Michelin have suspended production in some factories, and Brembo’s factories have also begun to suspend production. Some suppliers will continue with limited production, producing parts for markets where mobility or commercial activity is not yet restricted.

The coronavirus epidemic has also caused many suppliers to postpone the annual shareholder meeting. On March 18, Schaeffler said that the annual meeting originally scheduled for April 17 in Nuremberg, Germany, would be delayed. Continental also postponed the shareholders’ meeting originally scheduled to be recalled on April 30.

Tier 2 and smaller suppliers have also suspended production. French automotive and telecommunications circuit board supplier Actia also said it would suspend production at a plant near Toulouse. It is understood that the plant produces 1 million circuit boards per year.

In the United States, in response to the epidemic, the Motor & Equipment Manufacturers Association (MEMA) asked the government to provide emergency assistance, tariff reductions and other assistance on March 19. MEMA requires congressional leaders to formulate a “Manufacturing Emergency Assistance” funding plan to offset the cost of medical testing, and to maintain employment and prevent companies in key manufacturing sectors from going bankrupt. The group also called on the government to subsidize companies that move operations to the United States. To this end, MEMA wrote to the leaders of the Democratic and Republican parties in Congress and made a list of requests. Among them, the first is to ask the Trump administration to reduce tariffs on Chinese products and imported steel.

Contact the author: adambraylon@wheelsjoint.com


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