AutoBeta(AutoBeta.net)02/14 Report--

With the expansion of the pneumonia epidemic infected by novel coronavirus, the impact on the automobile industry is far greater than expected, and carmakers have delayed returning to work one after another. The Honda and PSA joint venture plant, based in Wuhan, Hubei, today announced another extension of the plant shutdown, with Honda planning to postpone production until the 24th.

Honda said on the 14th that according to the Hubei provincial government's plan, the resumption of production at Honda's plant in Wuhan was delayed by a week and planned to resume operations on the 21st and start production on February 24.

This is the third time that Honda has postponed the resumption of work at Dongfeng Honda, a factory in Wuhan, from February 14 to 17, and today the company has postponed it again to 24. Dongfeng Honda struggled to resume production almost throughout February.

At the same time, Dragon Motor, a PSA joint venture in China, announced that the company's formal resumption of work would be postponed to the 21st or later, subject to changes in the epidemic situation and relevant government requirements.

Honda and PSA factories in China once again extended the shutdown time, in response to the requirements of the latest notice in Hubei. According to the news released on Weibo in Hubei on February 13, in order to further strengthen the prevention and control of the epidemic, effectively reduce the flow and accumulation of people, stop the spread of the epidemic, and effectively protect the life safety and health of the people, Hubei continues to delay the resumption of work and school, with all kinds of enterprises in the province resuming work no earlier than 24:00 on February 20.

Dongfeng Honda Automobile Co., Ltd. is a vehicle production and operation enterprise jointly established by Dongfeng Automobile Group Co., Ltd. and Honda Technology Research Industry Co., Ltd., Japan. The company was established on July 16, 2003. the registered capital is 560 million US dollars, and the company has 12405 employees. At present, Dongfeng Honda has three production plants, all located in Wuhan, Hubei Province, producing CR-V, Civic, XR-V and other best-selling models.

The overall production capacity of Dongfeng Honda's three plants has increased to 632000 vehicles per year in 2019, compared with its annual sales of 789000 vehicles in 2019, up 13.2 per cent from a year earlier. In recent years, the market demand of Dongfeng Honda is greater than the factory capacity, and under the influence of the expansion of the epidemic, it is unable to produce for most of February, and terminal delivery cannot be carried out, further affecting the annual production and sales data.

Shenlong Automobile Co., Ltd. was established in May 1992. it is a passenger car production and operation enterprise jointly established by Dongfeng Automobile Group Co., Ltd. and PSA Group of France, with a registered capital of 7 billion yuan. Dongfeng Company and PSA Group each account for 50% of the shares. At present, DPCA is headquartered in Wuhan Economic and technological Development Zone, with Wuhan factory (including three complete passenger car manufacturing units), Chengdu factory in Chengdu and Xiangyang factory in Xiangyang. DPCA has two joint venture brands: Dongfeng Peugeot and Dongfeng Citroen.

Data show that DPCA's cumulative sales in 2019 were 113600, down 55 per cent from a year earlier. The current situation of DPCA is relatively difficult. One and two factories in Wuhan are sold in different forms, while layoffs are launched.

Under the continuing influence of the epidemic, some car companies have resumed production, and relevant departments and enterprises should require all employees to wear masks and check their body temperature when entering the factory, so as to prevent the spread of the epidemic. At the same time, due to the abnormal recovery of the parts supply chain system, the progress of factory production is also relatively slow. For car companies that fail to resume production, if the suspension of production is long-term, it may have an impact on performance.

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