While work is being resumed across the country, enterprises in Hubei Province, which are in the hardest-hit areas, are still at a critical moment in fighting against the new coronavirus. As for when they can resume operations, what impact will the epidemic have on them? The extent of the impact is currently unknown.
It is reported that due to the severe epidemic, which has led to continuous delays in resumption of work, Hubei auto parts manufacturers generally face high employee costs and equipment costs, and cash flow tends to be tight. Even parts supply companies that organize the resumption of work are also facing difficulties. Facing constraints such as shortage of raw materials and insufficient personnel. At the same time, the industry estimates that due to the long procurement and payment cycle for suppliers in the automotive industry, the tight cash flow situation of suppliers after the resumption of work will not be alleviated in a short period of time.
According to Jiang Qiliang, head of Foton business of Hubei Sanhuan Axle Co., Ltd., the sudden epidemic caused a direct economic loss of about 30 million to the business he was responsible for, and the company's overall loss was as high as 1.5 to 1.5 million yuan. 200 million, which seriously affected the development and performance plan for the whole year.
After feeling the plight of these enterprises, a "spring letter" was sent from Beijing a few days ago, sending hard-core support to Hubei enterprises. On February 10, Foton Motor issued "Spring is bound to come, Jun is bound to bloom - a letter from Foton Motor to Hubei suppliers". Gong Yueqiong, Secretary of the Party Committee and General Manager of Foton Motor Group, proposed in the letter that Foton Motor will Four pragmatic commitments implemented by suppliers.
Foton Motor's open letter stated that, first, after the epidemic is over, no matter when Hubei suppliers resume work, Foton Motor will ensure that this year's procurement volume increases by 20% based on 2019. Second, products from Hubei suppliers are purchased and all goods are delivered in cash to provide support for the rapid resumption of production. Third, actively ensure the disinfection, epidemic prevention and logistics transportation of Hubei suppliers. Fourth, establish a complete supervision and management mechanism to strictly implement the above commitments. The financial system will also be arranged in accordance with the commitments and a feedback hotline will be set up.
From the loss of orders that Hubei auto parts companies are most worried about, to the stability of the capital chain, to epidemic prevention safety and logistics needs, as well as the implementation of the above commitments, Foton Motor has guaranteed everything. As the largest commercial vehicle leader in China, Foton's commitment has obviously given Hubei suppliers a boost of confidence and reassurance.
A few days ago, Foton Motor made a more hard-core support measure: when Hubei was unable to start construction, Foton Motor took the initiative to contact Hubei suppliers, and more than 350 million yuan has been paid in advance.
Hubei is the core region of the domestic automobile manufacturing industry. Its automobile manufacturing and supporting parts supply ratio has always been at the forefront of the country. It has now formed two automobile industry corridors, namely from Shiyan to Xiangfan, Suizhou, Along the Xiaogan and Wuhan lines; and along the river from Jingzhou, Yichang, to Huanggang and Huangshi, the advantages of industrial clusters are obvious.
It is understood that Foton Motor has laid out a supply system for dozens of product categories in Hubei, including axles, clutches, shock absorbers, ECU assemblies, batteries, etc., with a total of 46 suppliers at all levels. , 25 of which purchased more than 10 million yuan. Core component suppliers include more than ten companies including Sanhuan Axle, Camel Battery, Yongan Axle, and Ryoden Electronic Control. Among them, suppliers such as Sanhuan Axle are among the top 500 companies in China's machinery industry and among the top 100 in China's auto parts industry.
In 2019, on the basis of the overall decline of 9% in the commercial vehicle industry, Foton Motor's annual sales volume still reached 540,000 units, bucking the trend and growing by 5.4%, and its spare parts procurement amount also increased accordingly. According to statistics, in 2019, Foton Motor's procurement volume from Hubei suppliers was 1.98 billion yuan, accounting for 3.3% of the group's procurement volume. Among them, several companies such as Sanhuan Axle, Camel Battery, Yongan Axle, and Ryoden Electronic Control are at the forefront of the supply share, with a purchase amount of more than 19 million yuan.
Compared with 2018, Foton Motor's procurement amount from Hubei suppliers increased by 1% year-on-year in 2019 despite the pressure to grow against the trend, and Foton's promised 2020 procurement amount this time The year-on-year increase is as high as 20%. With the national automobile market affected by the epidemic and Foton Motor's pressure also doubling throughout the year, Foton's move is obviously to significantly transfer the pressure from Hubei suppliers to itself.
"Currently, Foton Motor's factories have resumed production one after another and are on track. Group leaders have noticed that Hubei suppliers have been unable to resume work due to the epidemic. As an important supply chain partner of Foton Motor, group leaders expressed their deep concern. Pay attention and require the procurement department and other departments to quickly understand the needs of suppliers and come up with solutions. In the end, the meeting discussed and quickly formulated these four major commitments to support Hubei suppliers in persisting in fighting the epidemic and solving their worries." How this decision was made was stated by Futian.
According to survey data from the China Automobile Association, affected by the pneumonia epidemic caused by the new coronavirus, parts and components companies will suffer losses in operating income, which will reach a maximum of 2 billion yuan. Among parts companies, the proportion of companies with revenue losses of 20 million yuan to 50 million yuan is 16.
Due to the large scale of industrial agglomeration and the late resumption of work, Hubei's vehicle companies and upstream and downstream supply chains are currently facing increased costs and tight cash flow. At the same time, Hubei's automobile industry is facing a crisis during this epidemic The severe damage suffered in the epidemic has also directly affected the recovery of the domestic automobile industry. Many vehicle companies have had to find backup suppliers because the supply of parts and components from Hubei has been interrupted, which has affected the resumption of work.
In this regard, Foton Motor called on all Chinese automakers to work together to support the supply of spare parts in Hubei and the "spring" of auto companies to come early, and to jointly restore the smooth operation of the economy and Automobile industry development.
“Our biggest gain comes from confidence! As a supplier in an epidemic area, we deeply feel the care and support given by Foton Motor, which makes us more confident to face the epidemic and overcome difficulties. " Xiang Yanguo, the person in charge of Hubei Sanhuan Clutch Co., Ltd. said.
Since the outbreak of the COVID-19 epidemic, Foton Motor has been paying close attention to the needs of the affected areas and has scientifically and systematically deployed pragmatic assistance to Hubei. On February 1, BAIC Group and Beiqi Foton Motor donated 40 Foton Tuano negative pressure ambulances called "mobile purifiers". Negative pressure ambulances are the key materials needed to rescue severely ill patients in Hubei's fight against the epidemic. . On February 13, the first batch of 8 negative pressure ambulances were delivered to 7 hospitals including Wuhan No. 7 Hospital, Hanchuan Traditional Chinese Medicine Hospital, and Huanggang Central Hospital in Hubei Province, and were immediately put into front-line rescue work.
In order to ensure that a large amount of medicines, medical and life support materials are transported to various parts of Hubei Province as soon as possible, batches of Foton Auman heavy trucks and Foton Aumark loaded with epidemic prevention and control materials have also rushed to the epidemic situation. front. In addition, in the list of the first batch of new technologies, new products and services to fight the epidemic recently released by Zhongguancun, Foton Motor was successfully selected into the first batch with its products such as medical waste transport trucks, refrigerated trucks and negative pressure ambulances that are effective in fighting the epidemic and quickly put into use. Checklist.
Foton Motor stated that Foton Motor will continue to do its best to help Hubei fight the epidemic and restore the industrial economy. I believe that with the completion of Wuhan Huoshenshan Hospital and Leishenshan Hospital, and more than ten Ark hospitals being put into use, the epidemic situation of the new coronavirus pneumonia is about to reach a turning point. I believe that with the efforts of the people across the country, Hubei's "spring" is about to come. .
This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.