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Closed loop production of many automobile enterprises Volkswagen, Toyota, Honda, etc. stopped and reduced production in Chinese factories

Publish Date: 2022.12.03

The secondary impact of the epidemic affected the automobile industry again.

According to several foreign media reports, a Volkswagen spokesman said on Monday that due to the shortage of parts, the two production lines of FAW-VW Chengdu Factory and Changchun Factory have stopped production, and there is no expected recovery time or closed-loop production planning. FAW Volkswagen has not replied to the above report.

多家车企闭环生产 大众丰田本田等在华工厂停减产

A person familiar with the automobile enterprises told the author that due to the epidemic situation and other complex reasons, the automobile enterprises and factories across the country were more or less affected. The insiders of GAC Honda said that they did not live at home and had been working normally. Foreign media said that although Guangzhou Automobile Factory of Guangzhou Honda Motor Co., Ltd. did not shut down, it has been reducing production capacity.

Volkswagen Toyota Honda stops production or reduces production at its factory in China

In its report on November 30, the Nikkei Chinese website mentioned that Toyota, Honda and other Japanese car companies were forced to reduce or stop production due to China's strict epidemic blockade measures. From November 28 to 29, Dongfeng Honda shut down its three complete vehicle plants in Wuhan. Toyota spokesman Shino Yamada also said that due to various factors, the company is adjusting part of its production (production reduction) in its factories in China, but declined to elaborate.

多家车企闭环生产 大众丰田本田等在华工厂停减产

It can be said that the reasons for the shortage of core parts and chips, whether due to the isolation of people at home due to the closure of the epidemic or due to various comprehensive factors, are the "mountains" in the production field of Chinese automobile enterprises.

On November 27, Ideals also announced in the official APP that due to the delay in the supply of core parts, some models that should have been delivered at the end of November will be delayed to December. However, Ideals further said that the models originally planned to be delivered in December would not be affected.

But at the same time, it should be noted that according to the survey conducted by the Passenger Transport Association, the production capacity of domestic automobile enterprises remained the same as last year from November 1 to 27. "Although some brands in overseas markets exposed that the overall global output forecast for the whole year was affected by factors such as the shortage of spare parts and the interference of energy supply, the production output in the Chinese market is still basically stable at present, and the fuel garage is absolutely abundant."

多家车企闭环生产 大众丰田本田等在华工厂停减产

Of course, due to the recent rebound of the domestic epidemic, the Passenger Transport Federation also said that the proportion of auto dealers closing their stores has increased, which has a great impact on the market showroom traffic and orders. The data shows that in the fourth week of November (November 21-27), the retail sales of passenger cars in the narrow sense reached an average of 53000 vehicles per day, down 31% year on year and 32% compared with the average in the fourth week of October this year.

The automobile enterprises and factories in Wuhan and Guangzhou have closed loop production

In fact, due to the frequent outbreaks of domestic epidemics, many automobile enterprises have started the closed on-site production strategy.

According to Dongfeng Toutiao's official account, Dongfeng's car enterprise factories in Wuhan have once again launched the "front-line production" defense war.

At present, DPCA Wuhan Plant strictly implements closed-loop management, and 1100 employees are currently stationed in the plant for closed production. Since November 23, 2300 people have been stationed in Dongfeng Passenger Car Factory.

多家车企闭环生产 大众丰田本田等在华工厂停减产

In Guangzhou, since November 24, GAC Passenger Cars and GAC Research Institute have conducted closed-loop work and production drills. By November 20, GAC Group had invested about 3800 people in Panyu and about 700 people in Conghua Pearl Industrial Park.

Since October 17, Dongfeng Nissan, a joint venture car company, has also launched the overnight production strategy. At present, Guangzhou Huadu Factory has about 1500 offline vehicles on average every day, which is smaller than the normal output.

多家车企闭环生产 大众丰田本田等在华工厂停减产

According to foreign media reports, due to the epidemic situation in China and the containment strategy, Bosch, a parts supplier, has adopted a closed-loop production strategy in four factories in China, including Chongqing, Chengdu and Jinan. Bosch said that the impact of closed loop production is controllable and can meet customer orders at present.

It is worth mentioning that according to Goldman Sachs' macro outlook for China in 2023, China's GDP growth will accelerate from 3.0% this year to 4.5% next year, because China may exit the policy of dynamic clearing of COVID-19 cases.

The report points out that the policy of exiting the dynamic clearing of COVID-19 cases may start soon after the "two sessions" in March, thus driving China's economic growth. Specifically, the economic growth rate in the first half of the year may be significantly lower than the market expectation, but it will be significantly higher than the market expectation in the second half of the year. "We believe that the initial stage of China's reopening may be detrimental to growth. At that time, there will be a surge in COVID-19 cases and a temporary decline in population mobility, similar to the experience of several other East Asian economies in reopening."

Summary:

According to the data of the Passenger Transport Association, the inventory of domestic auto enterprises is generally high at present, and some stimulus policies may stimulate auto consumption. However, the epidemic situation and the uncertainty of the policy, as well as the problems of core parts and missing cores brought by it, have brought certain risks to automobile consumption at the end of the year. The Passenger Transport Federation said, "The early consumption before the Spring Festival next year is expected to be reflected in the near future. As long as local prevention and control are not excessive, there is still confidence in the car market at the end of the year."

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