By the epidemic, Hyundai suppliers are still facing problems such as insufficient number of workers and a sharp drop in orders.
The epidemic has lasted for nearly a month, and many suppliers of Hyundai have not been able to resume work fully. By around the field to return to the staff isolation and other restrictions, some Korean suppliers are still in the current situation of labor shortage. Another group of Korean-funded Hyundai suppliers have seen their order books drop sharply because of the failure of the host factory to resume full production. In China and South Korea automotive supply chain is increasingly tied, difficult to detach from each other, but the epidemic in South Korea has a tendency to spread.
Resumption of work has many restrictions, order reduction of nearly 80 percent
Recently, there is much information that a Hyundai supplier called Jingxin Electronics, due to the epidemic delayed the start of work, can not produce wire harnesses, resulting in some of the Hyundai group of South Korean factories shut down for many days. The problem of labor is still plaguing Jingxin Electronics. on February 25, China car network dialed Jingxin Electronics Qingdao Jimo office phone, the operator told them that they began to resume work on February 23rd.
Jingxin Electronics is a wholly owned enterprise invested by South Korea's Jingxin Industry Co., Ltd. to produce automotive wiring harnesses and automotive instrument lamp parts, with factories in Yancheng and Qingdao, etc.
The company is a wholly owned enterprise invested by South Korea's Jingxin Industry Co.
Despite the resumption of production, subject to multiple policy constraints, Jingxin Electronics is still facing a shortage of personnel and other issues. Qingdao City recently introduced a policy that requires people from other provinces to return to Qingdao, need to be isolated at home for 14 days, by the full-time staff of the isolation of people at home to send living supplies.
One of the insiders of the Qingdao factory of King's Trust Electronics told CNN that people from outside the province are now required to return to Qingdao to isolate themselves for 14 days, and that even if employees from other areas of Shandong Province, especially Jining, want to return to Qingdao to work at their factories, it will be difficult for them to get through to the street offices. On the one hand, it is difficult for the staff to get to work, on the other hand, the government requires that a workshop can not gather too many people, and try to spread out during the meal, under all kinds of constraints, they can not resume work in full.
With the old staff in the field unable to come on board, Jingxin Electronics is still in a state of labor shortage and can only recruit new people locally in Qingdao. For them to enable new employees is really helpless, "new employees are not skilled enough, the details are often not good enough to deal with, training them also need to spend a period of time," the company insiders lamented.
Jingxin Electronics is not an isolated case, in the view of the suppliers, "now the difficulties are overall". Jingxin Electronics is now the main customer for South Korea's Hyundai factories, its anxiety is a major problem is the lack of labor, unlike Jingxin Electronics, Beijing Hyundai suppliers worried about the main problem is revenue.
Rizhao Yuluo electronic technology is a Korean-invested auto parts manufacturers, the production of linear ignition coils, spark plugs and other core parts of the car engine, supplying Beijing Hyundai, Dongfeng Yueda Kia and other OEMs. Talking about the negative impact of the epidemic period, the parts factory people to the car network bluntly: "Now the order quantity is too small, the factory is resting no work."
More than Rizhao Yuluo electronic orders plummeted, Qingdao has Korean auto parts also suffered from its disturbances. The latter is a wholly owned South Korean enterprises, Beijing Hyundai suppliers, mainly produces automotive air conditioning parts and other components. The company revealed to the car network, compared with the epidemic before the occurrence of their orders decreased by 70% -80%. In contrast, employees not being able to show up for work as much as they should is no longer a big problem. "There isn't that much work now, and with fewer people coming to work, our cost burden is correspondingly less," said one of the company's managers.
Suffering from upstream and downstream? Host plant significantly reduce production
For Beijing Hyundai for what reduction, suppliers have their own speculation. "We also have a lot less orders, but I think Hyundai is now reducing the amount of purchases, more because suppliers can not supply goods. Not only Beijing Hyundai is reducing production, I know of a number of OEMs are now only open 8 hours a day production line, the production line used to run 24 hours a day, can not return to full production is the problem faced by the whole industry". A fellow supplier to Beijing Hyundai, called Qingdao Chengyou metal employees said.
The above Qingdao has Korean auto parts manager said she heard that Beijing Hyundai's current inventory is high, and she believes that its purchasing volume has been reduced significantly, mainly due to the subsequent market is not optimistic. Forecast outlook tends to be pessimistic, the purchasing department will be cautious order, because as long as a pair of suppliers to order, the host plant is obliged to digest the upstream inventory.
In this regard, Beijing Hyundai, an insider admitted to the car network, they do have a certain amount of inventory, higher than the Japanese OEMs, but production cuts are more subject to other factors, is a desperate move.
It is reported that at present, Beijing Hyundai has five factories in Beijing, Cangzhou, Chongqing, February 14, Beijing, Chongqing, Cangzhou have issued regulations, February 14, the field to return to the city personnel need to be isolated at home for 14 days.
The above Beijing Hyundai insiders revealed that most of the Beijing plant employees have passed the isolation period because the Beijing area has resumed work in early February. However, the start of work in other areas of the plant did not go smoothly, Hyundai Cangzhou plant resumed work on February 17, Chongqing plant has not resumed work until February 21, the resumption of work time is late, the demand for parts and components is also relatively small.
Because some of Hyundai's upstream suppliers and non-local employees of logistics companies are unable to go to work for the time being and have not yet reached the state of resumption of work, Hyundai is still gradually resuming production and has not fully resumed work.
"Of course we want our factories to produce at full capacity, but if our suppliers don't deliver on time, we have no rice to cook. Logistics companies have not resumed work, even if we produce can not be shipped out." Another Hyundai employee said.
The supply chain is tightly bound?
The four Shandong suppliers interviewed by the car network are all wholly owned by South Korea. Hyundai's suppliers are basically Korean companies, in its parts supply, a larger proportion of multinational suppliers such as Mobis, Hantai tires, POSCO are also Korean companies.
In Beijing, Cangzhou, Chongqing, Qingdao and Yancheng, there are a large number of Korean auto parts factories. Because of the large number of Koreans gathered, the Chongqing government plans to set up a Sino-Korean industrial park in the Liangjiang New District factory, where the Beijing Hyundai plant is located, to introduce Korean restaurants and department stores.
According to relevant data, South Korea's exports of parts and components to China last year amounted to 2.18 billion U.S. dollars, and China's exports of South Korean parts and components totaled 1.56 billion U.S. dollars. China-Korea trade volume and people-to-people figures have been growing over the past few years, with 2 million Koreans living in China and 100,000 Koreans settling in Qingdao alone.
In recent days, the epidemic in South Korea has spread, as of February 27, 1,595 people in South Korea **** diagnosed with new crown pneumonia, the last three days of new cases are more than 150 cases.
In response to the epidemic in South Korea, mainland China has issued a city of solidarity. 25 February, Yancheng bilingual bulletin, Hyundai Kia as the representative of the Korean-funded enterprises invested in Yancheng, for the city's economic and social development has made a positive contribution. Korean people working and living in Yancheng is Yancheng's "new citizens", in the prevention and control of the epidemic, we should be treated equally: for business, tourism and other short-term people to Salt, will be arranged in government-designated hotels to focus on accommodation and observation; diagnosed as an infected case, will be in accordance with the same treatment as the citizens of Yancheng and centralized treatment.
This article comes from the author of the automobile home car, does not represent the views of the automobile home position.