Many global businesses evacuate from China

Three major automakers with factories in Wuhan — GM, Honda and Nissan, which has a plant under construction — have announced plans to evacuate employees from Wuhan. Honda confirmed on Monday that 30 employees and their families at its plant near Wuhan were being sent back to Japan. PSA Group also said the repatriation of employees from Wuhan would be done at the request of the French and Chinese authorities. Nissan also plans to withdraw the majority of its employees and their families from Wuhan to Japan.

Workers work at a GM car factory in China.Photo: AFP.

The Chinese government has decided to extend the Lunar New Year holiday by three days, until February 2, to prevent the spread of the disease. However, global automakers that manufacture in China may be closed for longer, some sources said.

This could be a painful time for manufacturers as the auto industry enters a recession. Sales in China, the world’s largest market, fell by 2.3 million units in 2019 and are expected to fall further this year. Last year, Renault sold nearly 180,000 cars in China, accounting for 5% of its global sales. Its key SUV models are all made in Wuhan.

In Shanghai, authorities have banned companies from operating until February 9. In Suzhou, a large industrial park that includes many pharmaceutical and technology companies in eastern China, authorities have banned businesses from operating until February 8. About 1,500 Japanese companies, including Panasonic and Kobe Steel, operate there.

In addition, many major automakers, businesses and banks have restricted or banned employees from traveling to China and Hong Kong, not just Hubei province - where the outbreak occurred.

Europe's largest bank, HSBC, has banned all employees from traveling to Hong Kong for two weeks and has banned travel to China until further notice. South Korean appliance maker LG has banned employees from traveling to China and advised those traveling there for work to return home as soon as possible. Facebook has taken a similar step, restricting employee travel to China.

South Korean chipmaker SK Hynix Inc said it was urging employees to avoid all non-essential travel to China, while Standard Chartered bank (STAN.L) restricted travel to both mainland China and Hong Kong.

In Germany, car supplier Webasto has suspended all company flights to and from China after an employee was infected with the coronavirus.

In addition, airlines are also canceling and rescheduling flights, allowing free flight changes as more and more countries such as the US, South Korea... warn people to limit travel not only to Hubei province but also to other parts of China.