In response to the wide spreading coronavirus infection across the globe, many world-leading automobile companies are temporarily closing their factories in the U.S. and Europe. These facility closures are expected to affect the supply chains of automotive components covering lighting and displays.

(Image: LEDinside)

Ford, General Motors (GM), Fiat Chrysler and Honda have shut down their manufacture facilities in North America. European automobile makers Volkswagen, Renault, PSA Group, BMW, Daimler also suspend production in Europe. Bloomberg reported that the synchronization in closing factories of heavy industry has not been seen since the WWII.

If the shutdowns continues, the production suspension will lead to delay in shipment and hit the sales all over the world. The automobile supply chain including automotive LEDs and displays will be impacted as well.

High margin automotive products became a niche field for LED and display makers recently as they have been suffered from severe price competition due to over supplier. Following the US-China trade disputes starting 2018, many suppliers from outside China are seeking for opportunities to revive their business.

The coronavirus outbreak starting in China earlier this year has led to production suspension in the country so that competitors from Korea and Taiwan were seeing opportunity for order shifting. However, as the epidemic continues to spread all over the world and led to factory shutdowns in the U.S. and Europe, leading to increasing uncertainties to the supply chain.