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Coronavirus may affect parts supply from Europe

March 12th, 2020 | by Automotive Business
Coronavirus may affect parts supply from Europe

Anfavea receives warning signal mainly from suppliers in Italy


After finding a possible risk of shortages of parts and components imported from China for some of its associates, Anfavea this week received warning signs from suppliers in Europe, mainly in Italy, where the government decided that starting on Thursday, 12 , all non-essential commercial activities are prohibited from operating throughout the country, where more than 1 thousand deaths have already been recorded by Covid-19, a disease caused by the coronavirus.

Last week, during a monthly press conference, the director of the entity Luiz Carlos Moraes said that given the risk of shortages, the industry is already considering alternatives, such as air transportation to advance the lots or even change and calibrate the production mix of the models. .

During the meeting with journalists, Moraes stressed that in addition to analyzing the impacts on the Brazilian operation with the coronavirus, Anfavea has as a priority the health and well-being of all people working in the sector, indicating that each company must take internal measures necessary to prevent an outbreak.

However, until now, there is no indication of a stoppage or shortage problem on the part of any of those associated with the entity. It is the same case reported by Dan Ioschpe, president of Sindipeças, which brings together auto parts manufacturers in Brazil. The executive points out that so far, there is no indication of a systemic problem in the supply of auto parts because of the coronavirus in the chain.

“The occurrence or not of a problem [of supply shortages] will depend on the time of resumption of productive activities in the affected places. It is possible that some companies are preparing for this, but we are not aware of specific cases. On the demand side, we will have to follow the evolution of the economy in Brazil and in the world ”, declared the president of Sindipeças.


The advancement of Covid-19 around the world has strongly impacted the global economy, making markets nervous. This raised the dollar in Brazil and for the first time the currency rose from R $ 5.00 during Bovespa’s trading session on Thursday, 12th, but closed at R $ 4.78.

For Abeifa, an association of vehicle importers and manufacturers, the negative impact of the dollar and the euro combined with the 35% import tax is unprecedented in the entity’s history. In a note, he informs that he will propose solutions with the government.

“We are looking for a reduction in the import tax from the current 35% to 20%, a rate equivalent to TEC, the Common Mercosur Tariff”, the association of importers informs in a note.

With regard to the coronavirus, Abeifa added that “each associate is monitoring the situation and deciding individually on the measures to be taken, if applicable”.


Research compiled by global consultancy McKinsey reveals the first impacts of coronavirus on business in the world, including implications that may arise in each sector, including the automotive.

Download the complete material here (in English).

Article courtesy of: Automotive Business

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