The impact of the epidemic on China's auto industry is becoming increasingly apparent, as if it were a "black swan" that suddenly fell from the sky.
According to foreign media reports, most of Hyundai's factories in South Korea will be shut down from Feb. 7, and some production lines are expected to restart on Feb. 11 and 12 due to the disruption of supply from Chinese parts suppliers.
On Feb. 5, the test-drive report interviewed Hyundai China, and the person in charge said he was not too sure about the situation, and had not yet grasped the impact of the matter on Hyundai's joint ventures in China.
In fact, the impact of production stoppages and supply cuts by Chinese parts companies is gradually spreading to the global auto industry. Just a few days ago, South Korea's Ssangyong Motor also announced the temporary closure of its Poyongtaek plant in South Korea for the same reason. In addition, Tesla, Toyota, Volkswagen and many other car companies have also issued a supply chain disruption warning.
February 6, a do steering and transmission system of foreign-funded enterprises market source told the test drive report, according to its understanding, Wuhan, Wenzhou, parts and components enterprises brought about by the impact is relatively large. "The current state of resumption of work in Hubei is uncertain, while some of the local parts supply relies on a large number of enterprises basically paralyzed."
On the other hand, due to the comprehensive strength of the components is relatively poor compared to the vehicle enterprises, some auto parts SMEs are also facing multiple pressures such as raw materials out of stock, capital, logistics difficulties, and even the risk of contract failure.
"May be facing unprecedented challenges, wages, rent, payments, loans to be paid every day, liquidity is good, larger enterprises are okay, some of the weaker pressure." On February 6, China Automobile Dealers Association new energy vehicle branch deputy secretary-general Zeng Piquan said in an interview with the test drive report.
However, in Zeng Piquan's view, in the big picture, this is also the night before the "machine" comes, parts and components enterprises should actively carry out "self-help" through the short-term difficulties.
On February 4, Cui Dongshu, secretary-general of the National Federation of Passenger Associations, told the test drive report that the core feature of automobile production is a long industrial chain, and the articulation of the supply chain is extremely important. "The epidemic is a test for parts and components enterprises, and it is recommended that vehicle companies should give more support to parts and components enterprises and make concerted efforts to **** off the difficulties." ?
Compared with the vehicle enterprises, in front of force majeure factors, the weaker ability to resist risk, a large number of parts and components suppliers first beckon.
A few days ago, there has been a Zhejiang Huzhou parts were exposed to the contract can not perform, and had to seek help from the relevant local government agencies.
It is reported that the name of the Huida Machinery Manufacturing (Huzhou) Co., Ltd. of auto parts companies, due to the inability to fulfill the previously signed "weekly delivery of 10,000 sets of steering gear shells to the African plant of the French Peugeot Group," the contract, and face to bear the price of the contract value of 2.4 million yuan in losses, but also The company is facing contractual losses of RMB 2.4 million in price, as well as losses of about RMB 30 million due to a two-week shutdown of the customer's production line.
To this end, the company had to seek urgent help from the China Council for the Promotion of International Trade (CCPIT) Huzhou Municipal Committee, applying for the country's first "force majeure factual proof of the new coronavirus-infected pneumonia epidemic," in order to minimize the losses to a certain extent.
February 6, test drive report on the matter of multiple contacts to interview the enterprise, but as of press time did not get a response. However, the test drive report in Huzhou City Council for the Promotion of International Trade official website to see, on January 31, it has issued a "new coronavirus pneumonia epidemic prevention and control during how to apply for the China Council for the Promotion of International Trade force majeure factual proof" and other related documents.
In fact, Huida Huzhou is just a microcosm of tens of thousands of parts and components enterprises across the country.
According to public data, at present China **** has more than 100,000 auto parts enterprises, of which only 13,000 enterprises with sales revenue of more than 20 million.
"The size of our company's personnel reaches 1,000 people, and the subsequent resumption of work, personnel in place, prevention and control issues, etc. have certain challenges. At the same time, the subsequent raw materials, logistics, etc. is also a potential risk." Engaged in various types of optical and electrical connector R & D and production of Shenzhen Tongmao Electronics, a deputy general manager on February 6, said the test drive report.
Meanwhile, the aforementioned market source of the foreign-funded enterprise of steering and transmission system told the Test Drive report that generally speaking, large companies can deploy their production capacity to other regions, so their risk-resistant ability is a bit stronger. In their case, the current impact is only on production for these two weeks.
The source also said that Hubei, Wenzhou and other parts and components companies have a greater impact. And, the capital operation of the relevant enterprises are dependent on the completion of close and efficient production, once a long period of suspension, in addition to the risk of contract performance, labor costs, rent, payments, loans and other aspects of the capital chain is also quite challenging.
With the spread of the epidemic, China's factory parts production stops, cut off the supply, but also let the global automotive supply chain is a test, the whole car business is greatly affected.
Foreign media reports say that Hyundai has had to shut down a number of factories in South Korea due to a break in the parts supply chain. It is reported that the shutdown may involve its seven factories in South Korea, which have long been producing cars for South Korea, the United States, Europe, the Middle East and other countries, accounting for 40 percent of Hyundai's global output.
The main reason for the shutdown is said to be a shortage of wiring harnesses, an automotive component that Hyundai purchases on a large scale in China. Last week, Hyundai stopped production of its popular 7-seat SUV Palisade due to a shortage of parts from China.
In fact, this isn't the only South Korean automaker that has been forced to stop production due to the epidemic.
On Feb. 2, Ssangyong Motor Co., South Korea's third-largest auto maker, decided to shut down its plant in Pyeongtaek, Gyeonggi Province, South Korea, from April 4 to 12 due to an inability to supply assembly circuits, one of the core components used in the production of SUVs.
It is reported that the assembly circuits for Ssangyong's models have been exclusively supplied by the Yantai plant in Shandong province, a subsidiary of Germany's Leoni Chemical Company, LeoniWiringSystemsKorea. However, the plant's resumption of supply has been delayed several times due to the impact of the epidemic, resulting in the Ssangyong side having few parts left in reserve to support normal production and having to decide to stop production.
Besides foreign automakers, local Chinese automakers have also been affected. Test Drive Report has learned from Ideal Auto that production and delivery of the Ideal ONE will be delayed to a certain extent due to the fact that the production of its various parts suppliers has been affected to varying degrees (with more than 10 percent of its parts being produced by companies in the Hubei region).
"At present, we are still taking stock of the resumption time of suppliers around the world, etc. The issues involved are very complicated, and we will further announce the subsequent production and delivery time depending on the overall situation." On February 6, Ideal Auto's public relations department said to the test drive report.
In addition, on Jan. 29, Volkmar?Denner, chief executive of Bosch, the world's largest auto parts supplier, warned that the outbreak could affect its global supply chain because of its heavy reliance on the Chinese market.
Publicly available information shows that Bosch has nearly 60 companies in China, located in Shanghai, Nanjing, Changsha, Suzhou, Wuhan, Chongqing and other cities. Among them, in Wuhan, where the outbreak is most severe, Bosch owns two factories that produce steering systems and thermal technology.
The risk of supply cuts for many domestic auto parts companies has triggered a reassessment of China's parts supply capabilities by several global automakers looking for alternative suppliers. For example, Hyundai Motor said it has been looking for alternative suppliers in other regions such as South Korea.
In the face of the epidemic, how can China's auto parts companies get through this difficult time?
In Zeng Piquan's view, auto parts companies should pay more attention to the epidemic situation on the one hand, so as not to bring unnecessary burdens and troubles to their own enterprises. On the other hand, to open self-help mode, as far as possible to ensure the smooth operation of the capital chain.
"In the big picture, I think it's the night before the 'machine' comes. Because through the epidemic, the government will certainly immediately introduce more policies conducive to market development to stimulate consumption, such as more lending, consumer policy refinement, tax cuts and burdens, greater opening of the right of way, pickup trucks into the city, and encourage new energy to the countryside." Zeng Pi Quan test drive report said, now the government as a "parent" has been difficult, the enterprise or to find ways to save themselves, find their own way.
It is worth mentioning that a number of domestic vehicle manufacturers have successively strengthened the "help" of parts suppliers.
February 5, Guangzhou Automobile Group said in an interview with the test drive report, Guangzhou Automobile will strengthen close communication with partners, especially parts suppliers and distributors, optimize the parts supply system, and strive for parts as soon as possible to resume normal supply, to ensure that the production plan of the host plant as soon as possible to return to normal.
"Has been the first time to suppliers issued condolences and information to inform the suspension of the relevant projects and delay the start, and hope that with suppliers and partners to overcome the difficulties and fight a good epidemic defense blocking battle." On February 4, Changan automobile public relations department said to the test drive report.
"The core feature of automobile production is a long industrial chain, and the articulation of the supply chain is extremely important. The epidemic is a test for parts and components enterprises, the car companies to give more support to parts and components enterprises, but also help *** degree of difficulty." Cui Dongshu said to the test drive report.
This article comes from the author of the automobile home car family, does not represent the views of the automobile home position.