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Auto Industry Expecting Production Setbacks from Hurricane Florence

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Sept. 13, 2018—LMC Automotive, which provides predictive analytics for the auto industry, has released a preliminary Hurricane Florence Impact Assessment report. The company said the storm surges directed toward multiple eastern and southeastern states may damage thousands of vehicles and curtail vehicle sales in the short-term.

According to a report by freightwaves.com, light vehicle production plants believed to be most at risk are the Mercedes-Benz, Volvo and BMW plants in South Carolina, although with over 400 automotive suppliers located in that state alone, a supply chain disruption could be far reaching. LMC also predicted that plants in Tennessee, Georgia and Kentucky could be impacted by flooding. The BMW plant in Spartanburg, S.C. alone could face a daily production loss of 1,400 units.

Several states, such as Maryland, Virginia, North Carolina, and South Carolina have been declared states of emergency in preparation for the weather event, which is currently classified as a Category 2 storm. As of Thursday morning, Florence’s winds and rain had reached the North Carolina coast, driving a storm surge that, according to the New York Times, was expected to reach 13 feet in some areas.

According to the National Hurricane Center, the eye of the hurricane was expected to make landfall by relatively early on Friday.

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