AutoBeta(AutoBeta.net)01/30 Report--

In response to the COVID-19 epidemic, China's automobile manufacturing and parts supply will be forced to stop due to the impact of the epidemic. At present, a number of car companies have announced plans to extend their holidays and temporarily suspend production. Bosch, the world's largest auto parts supplier, warned that novel coronavirus could affect its global supply chain, storing the risk of supply chain breakage.

Novel coronavirus may affect Bosch's global supply chain because it relies heavily on the Chinese market, according to Volkmar Denner, global chief executive of Bosch Group, according to foreign media reports. He added, "We need to wait for the situation to develop. If this continues, Bosch's global supply chain will be disrupted. It is predicted that the peak of infection will last until February or March. "

It is understood that in the main epidemic area of Wuhan, Hubei, Bosch has two factories producing steering systems and thermal technology, employing about 800 people.

With the continued impact of novel coronavirus's pneumonia, the General Office of the State Council earlier issued a notice to extend the 2020 Spring Festival holiday to February 2. The extended holiday plans subsequently announced by provinces and cities are also different. Wang Xiaodong, governor of Hubei Province, announced on January 29th that all kinds of enterprises in the province would return to work no earlier than 24:00 on February 13.

On January 29th, Bosch announced the main operating conditions of the group in 2019 at its headquarters in Stuttgart, Germany. The group's operating income in 2019 was 77.9 billion euros, the same as in previous years, of which the sales of the automotive division was 47 billion euros; profit before interest and tax was about 3 billion euros, a sharp drop of more than 40% compared with the same period last year, mainly due to the depression of the global automobile industry and the decline in production in China and India.

Denner, global chief executive of Bosch, said the weak global economy and a sharp decline in car production had affected Bosch's performance. Nevertheless, Bosch continues to invest in important growth areas, with plans to invest more than 1 billion euros in automotive electrification, automation and connected transportation in 2020.

As a result of the outbreak, auto parts giant Bosch warned of the risk of a break in the supply chain, while the car manufacturing industry is also facing the problem of stopping production.

Japan's Toyota announced that production plants in China will be suspended until February 9 in response to the spread of novel coronavirus. Others, including Dongfeng commercial vehicles, Dragon Motor, Dongfeng Renault, Ford Motor, and Tesla's Shanghai plant, also announced downtime.

The epidemic also affected a number of car dealer groups, including the largest automobile companies in China, such as Guanghui Automobile, Yongda Automobile Group, Hengxin Automobile Group and Bidley Group, and issued a suspension notice for each store.

The upstream and downstream of the automobile industry and terminal retail have been forced to stop operation due to the epidemic, which has dealt a blow to the operation of enterprises to a certain extent. coupled with the depression of the automobile industry for two consecutive years, 2020 will be an unstable year for the automobile industry.

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