Pull The Whole Body: At A Very Moment, Auto Parts Are Waiting For Work.

One week before the Spring Festival in 2020, pneumonia caused by the new coronavirus began to alarm. Domestic car companies are also on vacation in accordance with the normal rhythm, when few people expected that the whole industry chain plan would be disrupted.

With the spread of the epidemic throughout the country, local governments have issued strict regulations on resuming work and resuming business hours. Other foreign suppliers have suspended the operation of the entire company due to confirmed cases, and the rhythm of the automobile industry in February and even in the first quarter has been adjusted passively.

In twenty-first Century, an economic report reporter learned that the vast majority of vehicle manufacturers have re arranged the commencement time according to the local government regulations. However, the uncertainty of the host plant is that it is difficult for the auto parts or parts to be properly supplied in the epidemic. Therefore, even if the operation is started, the production plan may not be properly carried out.

The stability of the supply chain is likely to be hit by this epidemic. Recently, automobile industry expert Zhang Junyi told reporters on twenty-first Century economic report that during the epidemic period, the supply chain safety of the whole vehicle factory should be especially concerned.

"On the one hand, the domestic supply chain may be affected by the epidemic, especially the core components of batteries and motors in new energy vehicles. On the other hand, although the degree of localization of vehicle manufacturing is very high, many parts are supplied by foreign-funded enterprises in China's joint ventures, and there is no localization of 100%, which is also facing the risk of supply brought by the escalation of the epidemic."

It will affect the automobile industry that will even spread all over the world. In January 31st, Hyundai said that the company had to suspend production of some SUV models because its suppliers in China did not start until February 9th.

The development of automobile production has formed a global supply of industrial ecology. China itself is also an important base for the automobile industry. At such a special moment, the status of domestic component suppliers is indeed "pulling the whole thing".

Logistics Emergency

When will parts suppliers start? Like the automobile works, most of them are based on the dates stipulated by the local government.

A document issued by France's Hubei based R & D center and production base of Valeo group recently said that the company will implement the requirements of the general office of the State Council on extending the Spring Festival holiday, and the specific rework time will be arranged by local factories according to the local government's regulations and production plans.

Valeo did not disclose the specific start date. In twenty-first Century, a domestic component supplier consulted by the economic news reporter made the same statement. According to the relevant people, because the specific circumstances of each district are different, they can only make decisions based on local conditions. The assessment includes not only the requirements of the local government on holidays, but also the preparation of factories and the health of workers.

"The situation is changing every day, and the policies and conditions vary from place to place. We collect the latest information on the telephone conference every day, discuss and prepare measures." A foreign component enterprise insider told reporters on twenty-first Century economic report.

Parts and components enterprises are suppliers to the host plant, but they are also faced with restrictions from upstream. These people admitted that they were very concerned about the impact of the epidemic on the supply chain and logistics transportation. "Even if it works, it will be useless. The stock will run out in a few days, and the supplier can not keep up with it. The key is that most local governments strictly enforce the policy of postponed operation. Apart from the production of material and equipment for disaster relief, even if it can be produced, logistics and transportation will basically stop or the capacity will be greatly reduced."

"We also need to see suppliers." The above domestic parts suppliers also said. What we can do now is to analyze the upstream situation by factory, and to communicate with the vehicle factory about the delayed delivery of the order.

It is worth mentioning that the temporary "stop" effect of parts enterprises in China may spread throughout the world. A few days ago, BOSCH Group CEO Volkmar Denner issued a "warning". BOSCH's supply chain is very dependent on China. "We need to wait for the development of events. If this continues, BOSCH's global supply chain will be disrupted. "

Export or frustration

A large group of parts suppliers like BOSCH will disrupt the normal production of many foreign car companies once the supply chain interrupts. In fact, the deep collaboration of the global automotive industry chain will bring a direct response even if it is not BOSCH.

Recently, Hyundai Motor and Ssangyong motors both said that the production plan was affected by the stoppage of Chinese suppliers, including the moratorium on the production of Palisade models, while Shuanglong shut down its factory in Ping Ze City, Korea.

This may frustrate the export of China's auto parts. When the order can not be delivered on time, customers may turn their attention to other suppliers. In fact, Hyundai said it has been looking for alternative suppliers in South Korea and other parts of China.

China is already the world's most important auto parts production and supply base, with more than 10000 foreign-invested auto parts enterprises, and more than 70 billion U.S. auto parts exports.

Cui Dongshu, Secretary General of the Federation of economic and trade unions, told the twenty-first Century economic news reporter that the epidemic has great impact on China's spare parts exports.

"China's parts and components are very competitive in the world, such as tires and other fields, especially for the United States and other places. They are the main support for their after-sale market. If they do not want our order, it will be a loss for us. " Cui Dongshu said.

Wu Songquan, chief expert of China Automotive Technology Research Center, also pointed out that the epidemic has caused many enterprises to fail to start work normally, especially in factories with serious epidemic situation. If the epidemic time is too long, the layout of the global production of parts enterprises will inevitably be affected.

Wu Songquan said that the new crown epidemic in Wuhan was designated as PHEIC. The who's statement is "there is no reason to interfere in international travel and trade with no necessary measures". "No restrictions on Trade and personnel turnover" is expected. Countries are not expected to make trade restrictions easily. However, in the short term, production disruption, poor logistics and restrictions on personnel flow will directly affect exports. In the long run, the spread of the epidemic will further bring uncertainty to the automotive market, thereby affecting the overall export scale.