Business fallout: Nissan factories to shut in Africa, India

Johannesburg: Japanese automaker Nissan Motor Co. says it is closing factories in Africa, India and the Middle East and having office staff in those regions work from home.

The moves are in line with advice and “guidance” of governments and are intended to safeguard staff, customers and the public, the company said. It said production at its Alliance plant in Chennai, India (Renault Nissan Automotive India Private, Ltd) stopped on Monday until further notice. Operations will be suspended at Nissan’s Rosslyn plant in Pretoria, South Africa, and the company’s facility in Giza, Egypt will also stop production for two weeks, it said.

One in five companies surveyed by the American Chamber of Commerce in China expects delays in resuming normal business to last through the second half of this year.

About one-fifth of the 199 companies surveyed March 13-18 said they are back to normal after the Communist Party declared victory over the coronavirus and began easing travel and other controls. Three-fifths expect to resume normal operations by the end of April.

About 45% of companies in technology and services expect a “moderate to strong additional impact” in China due to the virus spreading worldwide.

Some 14% of companies said they are losing up to 500,000 yuan ($70,000) per day due to delay in reopening or restoring full operations. The delay of the Olympics until 2021 could have major financial consequences for its U.S. broadcaster, NBC Universal.

NBC paid $4.48 billion for the four Games between 2014 and 2020 and has sold $1.25 billion in ads for the Tokyo Olympics.

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