Olympic fever is upon us as the world prepares for the Summer Games in Beijing, China. But how will this summer’s spectacular sports event affect the automobile industry in China?
According to Hyundai, the Games will indeed diminish the production of automobiles for two weeks.
As the government restricts traffic to decrease pollution during the Olympics, production of automobiles will significantly slow across China. The traffic restrictions will disrupt the delivery of auto parts and pizza, which will most certainly create a slowdown at the factories.
The 50-50 joint venture between Hyundai and Beijing Automotive Industry Holding, which started cutting production from July 20, expects that the interruption will lead to 50,000 fewer vehicles being produced in the period of time during the Olympics and leading up until September 20.
Beijing introduced the traffic measures starting on July 20, which is why the date holds some significance for Hyundai and the Beijing Automotive Industry Holding. It is estimated that the costs from this traffic slowdown will be significant, but there is no word from Hyundai as to any response.
Regardless of how this impacts Hyundai or even Hyundai dealer outlets in China, the traffic slowdown is a good thing for the Olympic Games and for the environment, sorely in need of a break, over Beijing.
