With multiple strategies, the auto industry is pressing the “fast forward key” to resume production.
On April 15, the Ministry of industry and information technology held a special meeting to convey the spirit of the special meeting on ensuring smooth logistics and stability of industrial chain supply chain chaired by Vice Premier Liu He, and study and implement work measures. On the same day, the Ministry of transport stressed at relevant meetings that it was necessary to make overall arrangements and go all out to do a good job in logistics guarantee and smooth transportation. The people’s Bank of China also held a meeting on the same day to convey the spirit of the special meeting of the State Council, study and deploy the overall planning of epidemic prevention and control and economic development, and increase financial support for smooth logistics and stable industrial chain supply chain.
The capital market responded. In the afternoon, auto parts concept stocks rose and rebounded collectively. By the close of the day, several stocks such as Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) , Kunshan Huguang Auto Harness Co.Ltd(605333) , Jiangsu Xinquan Automotive Trim Co.Ltd(603179) , Bethel Automotive Safety Systems Co.Ltd(603596) , and 9 stocks such as Wuxi Longsheng Technology Co.Ltd(300680) , Changzhou Xingyu Automotive Lighting Systems Co.Ltd(601799) had risen by more than 5%.
In fact, the industry authorities have made arrangements for the impact of the supply chain on the automotive industry. On April 11, the equipment industry development center of the Ministry of industry and information technology issued the “notice on the launch of the” smooth supply chain coordination platform of automobile industry chain “. The notice said that in order to further ensure the smooth supply chain of the automobile industry chain, entrusted by the first Department of equipment industry of the Ministry of industry and information technology, our center officially launched the “smooth supply chain coordination platform of the automobile industry chain” on April 11, 2022 to help the automobile industry chain supply chain enterprises timely feed back and solve practical difficulties.
As an automobile industry with long industrial chain and strong synergy, the epidemic that has lasted for many days has indeed had a certain impact on it. According to the reporter’s incomplete statistics, since March this year, a number of main engine plants, including BMW, FAW Group and Tesla, have stopped production due to the epidemic. Until April 9, Weilai issued a statement saying that the whole vehicle production was suspended due to the impact of the epidemic on the supply chain; On April 14, the tank brand officer of Great Wall Motor Company Limited(601633) announced that due to the epidemic in many places, the production of tank 300 models involved 8 supplier partners was suspended and suspended. At present, the production of tank 300 models was suspended from April 14.
“If Shanghai and surrounding supply chain enterprises cannot find a way to resume production dynamically, all vehicle factories in China may stop production in May.” He Xiaopeng, chairman and CEO of Xiaopeng automobile, said on the social platform on April 14, “the good news is that some ministries and departments in charge are doing their best to coordinate and expect more support and joint efforts from the government and departments in charge.”
The linkage with the competent department of the industry is that the main engine factory is trying to continue production. “At present, the company makes flexible production through the flexible adjustment of various bases, production lines and product varieties, so as to minimize the negative impact of the epidemic.” SAIC GM Wuling told reporters.
With the joint efforts of the automobile industry, the main engine factory is fully resuming production. According to the information of Shenyang industry and Information Technology Bureau, as of April 13, there were 2146 industrial enterprises returning to work and production in Shenyang, including 1021 Industrial Enterprises above Designated Size, and the rate of returning to work and production of Industrial Enterprises above Designated Size reached 56.2%. Among them, the key enterprise brilliance BMW production line resumed single shift production. Two days earlier, Sun Jian, director of Jilin Provincial Department of industry and information technology, said that FAW had fully started to resume work on April 11, and the first batch of 47 parts enterprises were returning to work in an orderly manner.
On April 15, a circular entitled “notice on issuing guidelines for epidemic prevention and control of Saic Motor Corporation Limited(600104) resumption of work and childbirth” circulated in the industry. According to the notice, Saic Motor Corporation Limited(600104) plans to start the stress test of resumption of work and production on April 18.
” Saic Motor Corporation Limited(600104) has determined the time target for resumption of work and childbirth, but it may be adjusted according to the controlled situation of the epidemic and its own preparation.” In response to the above rumors, Saic Motor Corporation Limited(600104) responded to the reporter of the financial Associated Press, “at present, we should cooperate with the government in epidemic prevention, maintain and transform the equipment, and make careful preparations for production under the conditions of epidemic prevention.”
