Production delays disrupting auto industry
Production delays caused by the Covid-19 pandemic have disrupted the global auto industry, a car dealership boss said.
Glen Smith, managing director of Auto Solutions in Pembroke, said the closure of Chinese auto parts manufacturers due to the pandemic has caused “havoc” across the industry.
Auto Solutions sells Japanese brands Nissan, Mazda, Suzuki, Mitsubishi and Honda as well as Hyundai vehicles made in South Korea.
“A car might be built in Japan or South Korea, but components of it are built in China,” Mr Smith explained. “It could be the back end of a radio, or a light switch, that is built in China and then shipped to South Korea or Japan for installation.
“If they don't have the one part they need from China, production comes to a grinding halt. The majority of individual parts that go in the cars are built in China.”
Vehicles ordered by Auto Solutions go into production in Asia a month later. The cars are received by the dealership some ten weeks after they are ordered.
Harry Andrews, sales and operations manager at Auto Solutions, said delivery of the popular Hyundai Venue compact SUV has been delayed for three months due to the unavailability of parts.
“In May, we will get about 50 units at once, equal to three or four production months,” Mr Andrews said. “We are pre-selling them, so by the time we receive them in Bermuda, 90 per cent will be pre-sold.”