Automakers probably will dial back production by 15 per cent in China this quarter after extending holiday shutdowns due to the potentially deadly coronavirus, a top supplier said.
Aptiv Plc, which makes safety and electrification systems for customers including Volkswagen AG and General Motors Co., issued the projection along with quarterly earnings results Thursday. The company expects its own production to be down 11 per cent from a year ago.
“It’s a fairly fluid situation, as you might imagine,” Chief Financial Officer Joseph Massaro told analysts on the earnings call. He said the effect the virus has on the industry will depend on “the dislocation of labor that went home for the holidays, and how quickly they can all come back -- either from a practical perspective or from a government-mandate perspective.”
With a market capitalization of about US$22.2 billion, Aptiv is the most valuable U.S.-listed auto supplier, according to data compiled by Bloomberg.