Following the 2019-nCoV outbreak, businesses across China have been affected greatly due to the virus. This is especially true for those located in Wuhan City, the epicenter of the disease, as the Chinese government has put the city of 11 million people on lockdown in an effort to quarantine the virus.
As a result of the lockdown and the virus’ spread across the country, some companies and factories have begun shifting production outside of China. One of Honda’s suppliers, Ftech, is one of those companies. According to Nikkei Asian Review, The Japanese brake pedal maker is expected to move production from factory in Wuhan, China to its factory in the Philippines
Currently, Ftech’s operations at its Wuhan plant is suspended due to the coronavirus outbreak and subsequent lockdown of the city. It is unlikely that plant operations will resume anytime soon.
Ftech’s Wuhan plant currently produces brake pedals for Honda sport utility vehicles (SUVs) and supplies them to Honda factories in both China and Japan. Meanwhile, it’s factory in the Philippines, located at Laguna Technopark, produces parts for the automaker’s factories in Canada and the U.S. While the brake supplier does have another factory in China, located in Zhongsha, it does not supply parts to Japan.
The reason for the shift from Wuhan to the Philippines is so that they will be able to continuously supply parts to Honda factories in Japan. However, the production shift won’t be permanent. The company intends to shift pedal production back to Wuhan when possible. For the time being though, the pedals will be produced in the Philippines.
It is expected that other automakers and parts manufacturers located in China could follow in Ftech’s footsteps considering the situation in Wuhan.
Source: Nikkei Asian Review