The automotive industry chain is long and complex, which is destined to be more difficult than many industries to resume work and production. Due to the epidemic caused by "a cover is hard to find", many car companies in order to solve the mask supply problem have part-time mask-making.
Upstream and downstream need to "cover should be"
BYD began mass production of masks on February 17, plans to the end of the month masks daily production capacity of up to 5 million. In recent days, BYD a lot of internal staff of the phone was including the government and enterprises, including the various people, especially by the flow of BYD masks online ordering information published in the phone number of Mr. Zhou is very disturbed, he said he has fallen into the "abyss".
BYD insiders recently accepted the first automotive channel reporter said in an interview, because of the shortage of masks, BYD has not yet fully resumed work. Many non-production line employees online standby, have not yet known the specific time of resumption of work. The information that BYD masks are rumored to be on sale online is false, and there are said to be more than a dozen fake versions. In fact, after BYD mass-produces the masks, it will focus on supplying them to governments, hospitals, areas with serious epidemics and strategic partners.
"We also notch masks ah, BYD cross-border manufacturing masks, with the early resumption of production and sales is also related to part of the supply to the internal production workers and parts dealers, distributors and other strategic partners." The above people talked about, because of the surge in enterprises making masks, the production of masks, the supply of materials and machines is tight, the shortage of mask machine, the price skyrocketed, a set of production equipment from 250,000 yuan to about 1.2 million yuan.
In the face of the mask machine hard to find the status quo, Guangzhou Automobile Group to take a homemade way. The first automotive channel reporter learned from the BAIC Group, BAIC parts mask production project started on February 5, followed by a delegation to a Dongguan enterprise to learn and study the mask production equipment related technology and production processes, only 5 days to assemble an automated mask production line, and February 11 to complete the installation of the equipment on site, February 13 to start trial production, plans to the end of February, the end of the self-produced 30 mask equipment, the end of the month! will realize the daily production of 1 million masks.
Shanghai Automobile General Motors Wuling has been one step ahead, grabbing equipment, grabbing raw materials, and quickly completed a series of work such as clean room renovation, equipment installation, etc., and production in its plant in Liuzhou, Guangxi, clean room, has formed a daily output of 500,000 production capacity in the last week will be the production of the first one million masks off the production line in the field delivery.
These car companies have joined the ranks of making masks, in addition to supporting the front line of epidemic prevention, there are some masks for their own use and sent to the upstream and downstream industry chain and other partners. OEMs often tens of thousands of employees, plus partners, the team is very large, the masks required for the resumption of work, disinfectant and other protective equipment needs, on the one hand, to achieve their own as soon as possible to resume production of vehicles, on the other hand, to the upstream and downstream partners with each other, "the cover should be", in order to allow the industry chain to return to normal operation as soon as possible.
Currently, some upstream small and medium-sized parts and components enterprises have not been able to resume normal production, while the downstream dealers resume work in a low proportion, which is an unprecedented test for the OEMs.
Automobile enterprises are not easy to resume work and production
As one of the six largest automobile groups in China, Guangzhou Automobile Group, which employs 120,000 people, is now implementing the resumption of work and production by enterprises, fields and phases, and its subsidiary, Guangzhou Automobile Honda, is advancing in accordance with the "resumption of work on Feb. 10, and the resumption of production on Feb. 17," a plan to ensure that the health and safety of employees, taking into account all factors, are taken into consideration. Under the premise of ensuring the health and safety of employees, GAC Honda is striving to resume normal production in the shortest possible time to minimize the impact by taking into consideration the requirements of local governments for resumption of work, supply of parts and opening of 4S stores.
Not only GAC Honda, but also GAC Toyota, GAC Tranquility, GAC New Energy, and GAC Phillips Guangzhou factories under the GAC Group have all resumed production since the 17th.
Since Feb. 3, some automakers have been resuming work. Hyundai's factories in Beijing and Cangzhou, Hebei province, resumed work on Feb. 3, and the rest of the company's factories resumed work on Feb. 10 as well. However, Hyundai's factories are not running at full capacity at the moment, but are partially resuming work in a way that sets production according to sales. New car-making powerhouse Xiaopeng Auto also resumed work on February 10th.
According to the China Association of Automobile Manufacturers (CAAM)'s current survey of 183 vehicle production bases, as of Feb. 12, 59 bases, or 32.2 percent, had begun resuming work and production. It is not easy for OEMs to realize the resumption of work due to the resumption application process, shortage of epidemic prevention materials, difficulties in returning some employees to work, shortage of parts and poor logistics.
Like most car companies, Toyota's China plant was scheduled to start work on February 10th. But on Feb. 7, Toyota China announced that it would extend the date of resumption of production at its four plants in Tianjin, Sichuan, Jilin and Guangdong to after Feb. 17, with the exact date of resumption to be determined on the basis of a comprehensive judgment of parts procurement and logistics conditions. Toyota Executive Director Masayoshi Shiranagi said the decision to postpone the resumption of work is based on factors such as preventing the spread of the epidemic, parts procurement and employee commuting.
Since Feb. 17, more and more car companies have joined the resumption of work and production, including some factories of multinational automakers such as Toyota, Volkswagen and Nissan. Among them is Toyota, which resumed production at three plants in China starting this week.
Even if the resumption of work, due to the supply of parts and other issues, many car companies still can not be smooth and effective resumption of production, production more or less impaired, Hubei infected area of the road to the resumption of work of the car companies to resume production is even more arduous. A few days ago, Honda Vice President Seiji Kuraishi said at a press conference in the Tokyo metropolitan area, Dongfeng Honda can only be resumed after February 17 at the earliest. The relevant person in charge of Dongfeng Honda recently accepted the first automobile channel reporter said in a telephone interview, the Hubei Provincial Government requirements, the province's various types of enterprises to resume work no earlier than 24:00 on February 20th. Dongfeng Honda will strictly abide by the relevant regulations of Hubei Province and Wuhan Municipal Government, and resume work in accordance with the requirements of Dongfeng Epidemic Prevention and Control Command. The company will take into account the epidemic situation in Wuhan, where it is located, and will discuss the specific resumption of work in the context of ensuring the health of the company's employees, suppliers, dealers and other partners in the entire value chain, to be announced later.
Some Dongfeng employees believe that, with the overlay of factors such as parts supply and logistics, the company's production and operation will be fully restored at least until March.
China's auto market, which has seen sales decline for two consecutive years, is still off to a bad start in 2020 due to the epidemic. Data recently released by the China Association of Automobile Manufacturers (CAAM) showed that domestic auto production and sales in January fell 24.6% and 18.0% year-on-year, respectively. According to an analysis by the China Association of Automobile Manufacturers (CAAM), the impact of the epidemic on auto production and sales in January is still relatively limited, with a greater impact on February.
Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers (CAAM), said the epidemic has had a great impact on the production and operation rhythm and influence of enterprises. Hubei Province is China's major automobile production province, automobile production accounted for 9% of the country, Guangdong and Zhejiang three areas of the industrial base is also very much. In addition, the whole car factory is the national supporting, there are a number of levels such as secondary suppliers, as long as there is a link to the problem, will affect the rhythm of production of the whole car, and now the supply of parts and components is a very big problem. Chen Shihua believes that the impact of the epidemic on automobile production is expected to exceed one million units.
A 4S store resumed work a week only sold two cars
"War epidemic" complex, the host factory not only to assist the upstream parts and components enterprises, but also hand in hand with the downstream dealers **** through the difficult times.
Guangzhou Huangpu Avenue in Guangzhou City, the first store of Guangzhou Toyota, in order to do a good job of epidemic prevention, delayed to February 17 before the official start of work, all sales staff wearing masks on standby for each customer to the store to strictly measure the temperature, and to the store for each vehicle to disinfection.
Dealers are resuming work one by one, but the rate of resumption is much lower than that of OEMs. Some of the 4S stores that have opened their doors for business are not having a good time due to the epidemic. Guangzhou, a Dongfeng Honda 4S store responsible person recently accepted the first automotive channel reporter said in an interview, since February 10 since the resumption of work, there are one or two batches of guests every day, a week down the transaction only two, while last year's average monthly sales of about 200 vehicles.
According to the China Automobile Dealers Association of the dealers after the holiday resumption of work survey, as of February 12, in the Association's monitoring and research in Beijing, Shanghai and other more than ten provinces, autonomous regions and municipalities of the 60 automobile dealers group **** 3997 4S stores, the comprehensive resumption rate of 8.4%. The sales efficiency of the researched 4S stores was 4.7%, the after-sales efficiency was 6.2%, and the rate of employees returning to work was 20.2%. According to Luo Lei, Deputy Secretary General of China Automobile Dealers Association, automobile dealership is a capital-intensive industry, and most of the company's asset-liability ratio is above 60%, so many enterprises are facing the risk of capital outflow. Even after the epidemic is alleviated, it will still take some time for companies to operate normally.
In the short term, several organizations are not optimistic about auto sales. Deloitte Deloitte analysis pointed out that consumers' willingness to buy cars will diverge, and the overall decline in the short term. Under the epidemic, consumer after-sales demand weakened, dealers will delay the resumption of business, dealers short-term inventory pressure. In addition, Deloitte also believes that it is more difficult to approve car programs and may face inventory imbalance when consumption rebounds.
Research firm Wilson's short-term forecast for the domestic passenger car market is that the first half of 2020 or face a precipitous decline, based on the following reasons: from the terminal point of view, the big outbreak of the epidemic on January 20 and the opening of the Spring Festival holiday, the car market sales have been frozen, and dealerships around the country have almost no traffic; most companies delayed the resumption of work in February, the opening of the car market has no more than a few period of time, it is difficult to have a pickup in passenger car sales In March and April, if the epidemic is under better control, before the official announcement of the "lifting of the ban", people's attention to the epidemic and the degree of caution will not be reduced, and the consumer psychology is difficult to reach the normal level. In addition, most manufacturers have delayed the resumption of work, coupled with the shutdown period and the overlap of the Chinese New Year holiday, the supply of parts and components to disrupt the rhythm of production capacity and delivery of the short-term will have a certain impact.
As a result, Wilson is now forecasting that sales in the first quarter of 2020 are likely to fall by more than 50 percent year-on-year, while April in the second quarter is still affected by the epidemic, and the year-on-year decline is also likely to be more than 10 percent. However, the agency believes that "low start high, the third quarter rebound" is the main tone, the dawn after the night or in the second half of the year, to recover the full-year expected sales can still be expected.
Before the dawn, OEMs have taken multiple measures to reduce pressure on dealers, BMW, Audi, Volvo, Dongfeng Nissan, SAIC Volkswagen, Beijing Hyundai, Dongfeng Hyundai Kia, and many other automakers do not assess the February sales target, as well as to provide business policy support to dealers.
At present, although the automobile industry is only part of the staff and the link back to work, all the resumption of production and sales will take some time, but the CCA believes that the introduction of various measures to protect will promote the resumption of work and production, the manufacturers are still full of confidence, and the local government will also be introduced to help small and medium-sized enterprise policies.
This article comes from the author of the automobile home car, does not represent the views of the automobile home position.