Chinese car manufacturers are approaching a cash flow crisis after the Coronavirus affected its usual car sales for the second consecutive month.

The worlds largest car market experienced an insanely bad January sales month and collapsed 80 percent in February, sending the country’s massive car industry into a deep hole.

Moreover, China’s 2020 Beijing motor show has been cancelled because of the outbreak. The market situation has become grave in China.

Many car manufacturers outside of China are also taking a massive hit because of Coronavirus. All of Europe’s joint-venture operations in China have admitted to expect huge hits in the country, among these was the rampant market leader, Volkswagen.

Moreover, Tesla has a major problem now in China.  Their timing could not be worse. They just opened their new factory near Shanghai and desperately need Chinese cash flow to pay for it.