AutoBeta(AutoBeta.net)02/16 Report--

Toyota has twice announced the postponement of the resumption of work at its factories in China. It has not produced cars since February. After considering local logistics and parts procurement, Toyota officially confirmed the resumption time of its factories in China.

Toyota Motor Corp. said Monday that four of China's complete vehicle factories, Changchun and Guangzhou, which have been shut down due to the expansion of the new coronavirus pneumonia epidemic, will resume production on the 17th, while Tianjin factories will resume production on the basis of reduced operating rates on the 18th. The Chengdu factory has been postponed to 24 days later, when to resume work has not been officially determined.

Toyota's factory in China was originally scheduled to resume work on February 3, but due to the continued impact of the new coronavirus pneumonia epidemic, the local government's guidance plan and parts supply were postponed until February 10, and later postponed again until February 17.

A Toyota spokesman said earlier that the company would strive to prepare for normal operations after February 17 in a week after 10 days. The specific resumption date will be comprehensively judged according to the parts procurement and logistics status.

FAW Toyota Chengdu factory, which was further postponed to resume production after the 24th, mainly produces Costa medium-sized passenger cars and Prado 3.5L models. Affected by the national emission regulations, Prado 3.5L products will be discontinued in June 2020, and the product line will be completely transformed, and Toyota Asian Dragon fuel vehicles and their new energy products will be put into production in the future.

Toyota's China plant produced about 1.4 million vehicles in 2019, up 6.6% from the previous year. Including imported models and Lexus brands, Toyota sold 1.62 million vehicles in China for the whole year, up 9% year-on-year, surpassing sales in Japan for the first time. Among them, FAW Toyota's cumulative sales volume in 2019 was 738,000 vehicles, with a year-on-year growth of 2%, while GAC Toyota's cumulative sales volume in 2019 was 682,000 vehicles, with a year-on-year growth of 17.6%.

For Toyota, the growing importance of the Chinese market, as long as half a month of shutdown and subsequent slow recovery and other issues, may affect Toyota's performance and sales plans. Toyota China announced earlier that its sales target for 2020 is set at 1.76 million vehicles, a year-on-year growth rate of about 8.6%.

Other Japanese automobile enterprises, Honda company in China all factories postponed to 17 days after the resumption of work, Among them Guangzhou factory will resume production on 17, Wuhan factory is scheduled to restart operation on 21, To 24 start production, This is due to Hubei Province latest release regulations enterprises no earlier than February 20 24 o 'clock before the resumption of work.

Honda sold 1.554 million new vehicles in China last year, up 8.5 percent from a year earlier and a record high. Honda China has become the main market keeping pace with North America. If the shutdown is prolonged, it may affect the performance.

Nissan Motor Co.'s factory in Xiangyang, Hubei Province, also resumed work after 20 days, putting into production Teana, Loulan and Infiniti Q50L models.

Of course, automobile enterprises should also make corresponding epidemic prevention and control measures when returning to work, including wearing masks for all employees and detecting body temperature when entering the factory.

China's auto sales fell about 20 per cent in January and could fall more than 50 per cent in February as the epidemic continues to affect all automakers, which will face quarterly performance challenges.

The China Association of Automobile Manufacturers said that the sudden outbreak of new crown pneumonia disrupted the normal operation rhythm of the industry. In the short term, the production and sales of automobiles will be greatly impacted, and the parts supply system will be disrupted, which is undoubtedly "worse" for the automobile industry with great downward pressure.

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