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So far the industry says business as usual, but we think Singaporean car buyers could see delivery or parts delays in 2020 Now that the novel coronavirus (2019-NCOV) has hit the rest of the world, numerous carmakers have announced factory shutdowns both as a response to falling demand and as a preventative measure. As named in our Shutdown List (scroll down or click here), most of Europe is shutting down car production for the next two to three weeks at least.Some will only resume production in April or later, although with the entire NCOV situation everything is still touch and go. Pretty much every car factory has been shuttered from now til mid-April The summary: All of European car production has been shut down except for small-volume makers, North America is following suit, although its output is not as relevant to Singapore since very few US-made cars come here. The good news is that so far it seems to be business as usual for Japan, Thailand, and South Korea, meaning buyers or owners from mainstream brands may not be affected. That situation may obviously change, however. Currently Japanese carmakers are adjusting their output continuously. Toyota chairman Akio Toyoda quoted to Reuters: ” “At this point, we can’t foresee what’s ahead for automakers.” While South Korea seems to have its COVID situation under control, cases are still on the rise in Japan and in fact the country is reducing some of its measures. Cases are also still on the rise in Thailand with no widespread measures yet announced inside the country. CarBuyer has contacted most of the major brands and dealership groups in Singapore to ask them to comment on possible delays for customers – you can see those below. The summarised version is that dealers have enough stock on hand, while none of the major mainstream East Asian brands seem to be majorly affected yet. But from a professional perspective, we say that buyers of Continental vehicles can possibly expect to see delivery delays in future. As some companies have pointed out, there’s usually a buffer of existing stock to help meet demand. But if the long the shutdowns run of course, the stock dwindles and that’s when delays happen. Additionally, it’s not just new cars that will be affected, since some automotive suppliers are also shuttering their factories for the time being. That affects new cars – the situation in China in January already created production delays – and also the supply of spare parts too. With many dealers adopting split-team and more work-from-home initiatives, some may have leaner staffing situations now and service or delivery may take longer. CarBuyer has reached out to all the major car distributor/dealerships in Singapore asking for information on the situation Borneo Motors – Lexus, Suzuki, Toyota BMW Group Asia – BMW, Mini, Rolls-Royce Mr Christopher Wehner, Managing Director, BMW Group Asia. Will customers experience any delays in delivery? In preparation for the impact of COVID-19, BMW Asia increased stocks in order to meet customer demand. In Singapore, both Performance Motors Limited and Eurokars Habitat are in full operation with the necessary health and safety measures in place. We will do our best to continue delivering products to our customers in a timely manner with a premium experience. What about future orders? BMW AG has begun to shut down its European plants as well as Plant Rosslyn in South Africa. These will close by the end of the week, and the interruption of production for these plants is currently planned to run until April 19. At this time it is difficult to evaluate how future orders will be impacted. This will depend on demand in the coming months, as well as deliveries from our production plants in Europe. We are closely monitoring the situation, and will react quickly and flexibly. How long do you see this situation lasting? Any long-term effects on deliveries due to COVID-19, and the associated volatility of the financial markets, cannot be assessed at this time. BMW AG and our office in Singapore will continue to monitor the situation closely, and will keep our employees and partners updated regularly. The BMW Group knows how to manage difficult situations, and we have proven this many times in the past. Cycle & Carriage: Citroen, DS, Kia, Mercedes-Benz, Mitsubishi in Singapore Eurokars Group: MG, Mazda, Mini, McLaren, Porsche, Rolls-Royce Mr Shaun Domoney, Chief Operating Officer, Eurokars Group Nissan Asia Oceania Is there any delay on current Singapore customer deliveries? Are any plants in Japan and Thailand affected? In Japan, we are planning or have carried out temporary production adjustments at certain plants. There has been no impact on our other plants outside China, including Thailand. We continue to monitor the situation. Will the supply of parts be affected also? We do not have clarity yet on the impact of the new coronavirus. The wellbeing of our employees, our business partners and our communities is our highest priority. Volkswagen Group Singapore : Skoda, Volkswagen Mr Ricky Tay, Managing Director, Volkswagen Group Singapore VGS has sent out a letter to owners stating there could be possible delays due to working plans, rather than parts or production delays. Responses from Mr Ricky Tay, Managing Director, Volkswagen Group Singapore. Will customers experience any delays in delivery? Despite the shutdowns in Europe, we have assurance from our headquarters that business plans will be carried out wherever possible and that projects will continue as much as possible, to make sure there is minimal disruption in deliveries to our customers. In Singapore, VGS has implemented precautionary measures including work-from-home and split team arrangements to safeguard the wellbeing of our staff and that of our customers. Some of our frontline representatives and backend operations may not be at full capacity. Nonetheless, our teams are working hard and navigating all options to ensure we deliver our promise to customers as timely as possible. What about future orders? Currently, the Volkswagen brand has taken the necessary measure to suspend production at our European factories initially for an estimated ten business days only. As the COVID-19 situation is highly volatile, we will have to closely monitor the situation and manoeuvre through the uncertainties that lie ahead. In the meantime, we are making full use of our business continuity measures to ensure that deliveries of cars continue as planned. How long do you see this situation lasting? The coronavirus crisis is unprecedented and no one is able to gauge the extent of its impact or make a reliable forecast. But even as the epidemic continues to expand, the Volkswagen Group will continue to operate on the basis that the health and wellbeing of our entire community remains our top priority. The Shutdown List We’ve included factories that are known to build cars sold in Singapore, and have omitted North American unless relevant. BMW – has shutdown its Europe and South African factories until April 19, its US production, where it makes X series SUVs, is continuing production Mini is stopping production until April 17 at its UK plants, while Rolls-Royce is doing similar for four weeks until mid-April Honda – has stopped production at its UK factories, but there is no indication of its Japan or Thailand factories doing the same. Citroen /Peugeot/Opel – parent company PSA is closing its European factories until March 27 Ferrari – has stopped its production in Modena, being one of the first places in Italy to face the lockdown Fiat Chrysler – Fiat/Chrysler/Maserati has stopped production in Europe. Hyundai/Kia – The chaebol shut its factories in February due to NCOV but has since resumed production. Jaguar Land-Rover – has suspended production Mercedes-Benz – parent company Daimler has ceased most of its European production this week Nissan – Has stopped production at its UK Sunderland plant, which is where the Qashqai is made Renault – has shut its factories in France Toyota – has stopped European production Volkswagen Group – Audi, Bentley, Bugatti, Seat, Skoda, Volkswagen – announced on Tuesday March 17 that it would stop production in Europe for two to three weeks Volvo – has also ceased its European output from March 26 until April 14