By Jessica Sier 
 

Daimler AG is ramping up production at its plants in China and expects a pickup in Chinese consumer demand as the world's second largest economy comes back online following its coronavirus shutdown.

"Most of our dealers have opened again, customers are returning," a Daimler spokeswoman told Dow Jones Newswires. "Every day more people come to the dealerships. Demand is increasing, and that makes us feel optimistic."

Following the coronavirus outbreak there, China imposed strict measures to contain the spread of infections during the country's New Year celebration at the end of January.

As factories and plants throughout China's manufacturing regions suspended work, auto manufacturers around the world struggled to source parts and have since closed their European plants, partly due to supply shortages.

But since Chinese authorities have begun lifting restrictions on production facilities, and global central banks are injecting liquidity in capital markets, automakers such as Daimler are cautiously ramping up production again.

"We are ramping up our production activities there in a controlled manner," Daimler's spokeswoman said. China is five to six weeks ahead of the rest of the world, she said.

Write to Jessica Sier at jessica.sier@wsj.com

(END) Dow Jones Newswires

March 25, 2020 05:33 ET (09:33 GMT)