AutoBeta(AutoBeta.net)02/12 Report--

Due to the continuing impact of the pneumonia epidemic infected by novel coronavirus, after a nine-day delay, most automakers have started resuming work and production plans one after another. However, due to the greater impact of the epidemic, there are still many car companies to resume work rate due to epidemic prevention substances and regulations, unable to fully carry out the resumption of production plans, including Volkswagen brands with the largest sales volume in China.

Volkswagen Group said a few days ago that six of the 14 assembly plants it operates with local partners in China have resumed production, including five plants operated by a joint venture between Volkswagen and FAW Group. One plant operated in partnership with SAIC, but there are still eight other plants that have failed to achieve production, and full production is expected to resume on February 17.

Although none of Volkswagen's 14 factories are in Hubei, which is hardest hit by the epidemic, the delay in resuming work affected by the epidemic is no less than that of car companies in Hubei, where Volkswagen is the highest-selling brand in the country.

According to Volkswagen sales data in 2019, Volkswagen's total delivery volume in China reached 4.23 million vehicles in 2019, a record high, a slight increase of 0.6% compared with 4.21 million in 2018. FAW-Volkswagen (including Volkswagen and Audi brands) sold 2.13 million vehicles for the whole year, up 3.8% from 2.05 million in 2018 SAIC-Volkswagen (including Volkswagen and Skoda brands) sold 2.0018 million vehicles in 2019, down 3.07% from a year earlier, narrowly reaching the threshold of 2 million.

Even though Volkswagen brand sales in China have only increased slightly, the huge sales volume of the Chinese market has helped Volkswagen brands defend their top position in global sales, with a total of 10.9746 million vehicles sold, an increase of 1.3% over the same period last year. China accounts for 38.6% of Volkswagen Group's global sales, almost accounting for Volkswagen brand sales.

Obviously, for Volkswagen brands, the Chinese market is an inseparable market, and even a region that affects their life and death. Due to the great impact of the epidemic in China, Volkswagen brand production and sales will decline significantly this year. To this end, Standard Poors, the international rating agency, has previously issued a report saying: "Volkswagen will be the carmaker most affected by novel coronavirus's epidemic because nearly 40 per cent of its cars are produced and sold in China. Although its main factories are located outside the hard-hit Hubei province, some factories may be closed for a long time because of the government's control measures to combat the epidemic."

Honda is also mentioned in the report, because Honda's main production base is in Wuhan, and its sales and production are also more than 30% dependent on the Chinese region, so it will also be greatly affected by hidden information, but it is less serious than Volkswagen brands.

Data show that Volkswagen has two major joint venture brands in China, namely SAIC-Volkswagen and FAW-Volkswagen. Among them, SAIC-Volkswagen owns the products of Volkswagen and Skoda. Six major production bases and eight factories have been set up in Shanghai Anting, Nanjing, Yizheng, Urumqi, Ningbo and Changsha. FAW-Volkswagen has three major brands, Volkswagen, Audi and Jetta, and has set up six production bases in Changchun, Foshan, Chengdu, Qingdao and Tianjin respectively.

Although Volkswagen said, "We are trying to restore normal production processes, facing the challenge of restarting the supply chain nationwide, as well as the challenge of limited travel options for production employees."

But it can be predicted that the Volkswagen brand may miss the first place in global sales this year. Toyota, which has the second largest sales volume in the world, also has a certain market share in China, but it accounts for only about 15% in China, far less than Volkswagen's 39%. What's more, Toyota recently joined the Subaru brand in the alliance, it can only be said that this year's Volkswagen brand may be unlucky.

Automobile as a labor-intensive industry, how to ensure the safety of employees after returning to work will also become the first priority of automobile enterprises. Many car companies that have resumed work, such as Geely, BAIC, Great Wall, Xiaopeng and Skyline Motor, need to do adequate epidemic prevention work to ensure that materials are fully equipped and standardize the key points and processes of prevention and control.

SAIC Volkswagen has set up a volunteer team of about 500 people. According to the company's epidemic prevention and control measures and return to work requirements, a total of 6 teams are distributed in scene simulation, temperature measurement, employee parking lot guidance, bus and canteen management, psychological counseling and other work.

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