Electronics manufacturer MTA said that if its 600 employees in the northern Italian town of Codogno were not allowed to return to work within days, production lines at Fiat Chrysler (FCA) subsidiaries would be brought to a standstill.
Volkswagen, Daimler and BMW, all of which rely heavily on profits made in China, have repeatedly insisted that the full impact of the coronavirus on its supply chains was not fully known, due to the complexity of their procurement contracts.
The full impact of the shutdowns in China has only just begun to impact European industry. Germany’s BDI industry federation said on Wednesday. European companies fear that the supply of critical parts from Chinese producers will be cut off in the coming weeks by coronavirus-related disruption.
With the automotive, electrical, and pharmaceutical sectors expected to be hit by shortages of supplies from China, companies are looking for alternatives in sourcing their suppliers.