Fiat Chrysler Flags Coronavirus as New Risk to Global Business

(Bloomberg) -- Fiat Chrysler Automobiles NV is flagging the spread of the deadly coronavirus and potential for a worldwide pandemic as a new risk factor for its business in China and other global operations.

In a regulatory filing on Tuesday, Fiat Chrysler said epidemics like the coronavirus pose a threat to its business, although the automaker added it is too soon to determine how seriously it will affect consumer demand and its manufacturing capacity.

“The ultimate severity of the coronavirus outbreak is uncertain at this time and therefore we cannot predict the impact it may have on our end markets and our operations; however, the effect on our results could be material and adverse,” Fiat Chrysler said in its annual report.

The company said disruption to the auto-parts supply chain has forced it to temporarily close a factory in Europe and that the Chinese auto market has “begun to experience reduced demand.”

The coronavirus, which is believed to have emanated from the Chinese city of Wuhan, has spread around the globe to places as far away as Italy, which has been hard hit in recent days. One epicenter is the Italian regional district of Lombardia, which borders the district of Piedmont where Fiat Chrysler is headquartered and operates two vehicle assembly plants.

To contact the reporter on this story: Gabrielle Coppola in Detroit at gcoppola@bloomberg.net

To contact the editors responsible for this story: Chester Dawson at cdawson54@bloomberg.net, Melinda Grenier

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