As January's car market continues its downward spiral, could Wuling's production of masks be the start of an expansion of its business?

The start of 2020 has been an eventful one, with plenty of catastrophic news sparking concern among people around the globe in overseas areas: volcanic eruptions in the Philippines, a severe locust infestation in Africa, blizzards in Canada and Spain, deadly flu outbreaks in the United States, strong earthquakes in Turkey and Cuba, and an invasion of 700,000 bats in Australia. At home, there are also many problems, such as the new coronary pneumonia that caused us to delay the resumption of work, then earthquakes in Xinjiang and Tibet, Sichuan and many other places, and the emergence of highly pathogenic avian influenza in Hunan, which has claimed many lives and made the country feel heavy.

Also heavy is the Chinese car market, which saw the biggest drop in passenger car sales in 15 years, with only 1.699 million passenger cars retailed nationwide in the whole month of January 2020, up -21.5% year-on-year in January 2019,? a -20.8% increase from a year earlier, both the largest negative growth values on record for the CPSC.

In the overall downward environment, but there are a number of independent brands show a good trend of year-on-year growth against the trend. According to the data we obtained from fifteen independent brand car companies, nine showed growth, but most of the low-selling car companies. And present a year-on-year decline in the car companies among the BAIC New Energy and SAIC General Motors Wuling fell more, both more than fifty percent. The overall sales of SAIC-GM-Wuling is always higher, this plunge for the overall passenger car sales caused a lot of impact.

Perhaps because of poor sales there is a certain inventory backlog, or perhaps a sincere contribution to the country and the people. SAIC-GM-Wuling is not in a hurry to resume production of cars after the year, but first let some of the staff to resume production of masks, compared to Beijing Mercedes-Benz rushed to apply for the resumption of production of cars, many people believe that the SAIC-GM-Wuling approach is to make a contribution to the country, while Beijing Mercedes-Benz only focus on production profits, ignoring the health of employees. But in fact, SAIC-GM-Wuling really just to understand the country's "urgent needs", and prioritize the production of masks? We first look at the history of the predecessor of SAIC-GM-Wuling and then make a conclusion.

The predecessor of SAIC-GM-Wuling was born in 1958, in the central implementation of the "drum up energy, striving for excellence, faster, better and more economical construction of socialism", the Guangxi Zhuang Autonomous Region began construction of Liuzhou Power Machinery Plant new plant. Initially, the production of power machinery and military supplies, until 1961, began to formally test production of tractors. 1964 when the test production was successful, and plans for an annual output of 300 units, the formation of the predecessor of the SAIC-GM-Wuling prototype.

By the mid-1970s, the plant's annual output had reached 5,000 units, becoming one of the country's top 8 tractor factories. However, in the late 1970s, sales of tractor products began to decline. By 1980, the backlog of inventory amounted to 1,713 units, for which the plant implemented the policy of "specializing in miscellaneous" and began production of sewing machines and automatic shuttle looms in 1982.

But the factory has not given up the specialty - power machinery, in the production of sewing machines and automatic bobbin changer cotton loom at the same time began to test the production of microcars belonging to the people of the country. 1984, the factory's production of mini-vans through the national technical appraisal, that year, more than two thousand three hundred mini-vans put on the popularity of consumers. Until 1985, the plant completed the production of 4,224 cars, the same year renamed Liuzhou Miniature Vehicle Factory.

In 1987, when the Z110OVH van rolled off the production line, a Wuling trademark designed by Wei Hongwen, a college student at the plant, was officially registered and has been used ever since. So far, we are familiar with the predecessor of SAIC Wuling, by the Liuzhou Power Machinery Factory to operate the Liuzhou Wuling basic completion. It is worth noting that the automatic shuttle weaving machine in the "miscellaneous to raise specialties" project was officially discontinued in 1985, while the sewing machine project was officially discontinued only in 1989.

After the Liuzhou Wuling how to change into SAIC-GM-Wuling, and then how to go on the independent MPV "king" of the history of the first we do not start to say. From the previous history of SAIC-GM-Wuling (hereinafter referred to as "Wuling") predecessor, we note that the "miscellaneous to raise specialties" the four words, perhaps the Wuling this time to put into production masks is also their "miscellaneous to raise specialized

Wuling's production of masks is another beginning of their "specialization through miscellaneous" approach.

Wuling was the first automobile company to start production of masks in the new Crown pneumonia outbreak, completing a trial run in just three days, with a daily output of 1.7 million, and obtaining a national medical device license. The plant used for the production of masks is Guangxi DeFuTechnology Co., Ltd. which is a group under Wuling, originally providing interior production for Wuling automobiles. At present, the group has been renamed Guangxi DEFLEX Medical Devices Co., Ltd. and the scope of business has been expanded.

Although Wuling in the release of the production of masks news, said the plant production of masks part of the Liuzhou city government will be given to the unified deployment, used to support the front line of the epidemic, the other part of the will be given to the front line of the epidemic fighters, upstream and downstream industry chain and other partners. But after the epidemic, where will these production lines go? Or what kind of changes will be made after the expansion of the scope of operation of the Guangxi DEFLEX Medical Devices Co.

It is understood that the factory has built *** counting 14 mask production lines, after the epidemic left behind the production line may continue to carry out production. At this stage, the retail prices of all types of masks have increased to a certain extent. Although Wuling has now said that it will not make retail sales, we do not know whether it will make retail sales after the epidemic.

In fact, after the epidemic, Wuling will produce masks as retail profit, we should also thank Wuling in the epidemic period to pay. But this may be one of the "miscellaneous to raise specialties" program. In addition, we have also noticed that the scope of business of the factory also includes disinfectants, washing equipment, washing supplies, and so on. These may also be Wuling's items to "support specialties with miscellaneous items" after the epidemic.

Starting in the second half of 2018, China's auto market showed signs of a downward spiral, and to this day the market has not shown any obvious signs of recovery. And after the epidemic, perhaps there are fewer people who plan to buy a car, continue to wait and see, perhaps this year the Chinese car market, and even the global car market is even worse. In recent times, car companies began to produce masks, perhaps the car companies "to miscellaneous to support professional", with other non-professional projects to provide profits to save the overall viability of the car companies. But in any case, we still need to thank, some of the current car companies for the epidemic to modify production lines, manufacturing masks and disinfection supplies behavior.

This article comes from the authors of the Motor Home Car Family, and does not represent the viewpoint position of the Motor Home.