Nissan and Honda are delaying the opening of some factories in China because of the coronavirus

Japanese automakers have postponed the reopening of its plants near the epicenter of an outbreak of the coronavirus in China. This increases the risk of further supply disruptions, writes Reuters.

Nissan Motor Co said that its factories in Xiangyang (Hubei province) and Zhengzhou (Henan province) will be closed and after 24 February, when it was planned to resume work. The automaker did not specify a date for the resumption of operations.

Honda Motor Co said its plant in Wuhan, which became the epicenter of the epidemic, will be closed until March 11.

Chinese components are used in the production of millions of cars worldwide. Hubei province is a major center of production and supply of automotive parts.

Nissan said that the opening is delayed due to recent directives of the authorities of Hubei province, who asked the company to suspend its activities until March 10. Problems with the release of product from suppliers also affect the production of cars, the company said.

Nissan has also reduced production at some of its plants in Japan due to problems with the purchase of components.

the Data of China Association of passenger vehicles (China Passenger Car Association, CPCA) showed that retail sales of passenger cars in China in the first 16 days of February fell 92% yoy due to the outbreak of the virus.

the Government has promised to examine the possibility of stimulating sales of cars to support consumption.