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General Motors contracts 16 aircraft to transport spare parts, and it is necessary to protect the supply chain even if it is not profitable.

2024-11-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)03/09 Report--

Since the outbreak of the COVID-19 epidemic in January this year, China's automobile manufacturing and parts supply have been affected and forced to stop, so that the factories of some multinational car companies have also been shut down due to the shortage of spare parts in China. With the gradual weakening of the epidemic momentum, enterprises in the upper and lower reaches of the automobile industry have also resumed production one after another. in order to restore the supply of spare parts as soon as possible, some multinational car companies have even tried to "charter planes".

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According to foreign media reports, multinational car companies represented by General Motors and Ford all use large-scale charter flights to transport spare parts. Among them, General Motors has transported spare parts through 16 chartered planes, carried by China Eastern Airlines cargo flights, taking off from Pudong Airport to Chicago, each flight carrying 422 auto parts, with a total weight of 80.45 tons. to ensure a smooth supply chain at its manufacturing bases in North America, Brazil and Argentina.

On the same day, the China Eastern cargo flight, also carrying 94 tons of Ford charter parts, departed from Pudong Airport and arrived in Bangkok, Thailand at 5 pm on the same day to ensure the supply of parts for Ford's production base in Thailand.

It is understood that the outbreak of the epidemic during the Spring Festival has led to traffic restrictions, resulting in the detention of more than 600 containers in China. Obviously, the impact of the outbreak on overseas car companies is not just a shortage of production.

According to Qian Huikang, GM's global executive vice president and president of GM China, a few days ago, "for the automobile industry, the epidemic brings not only the impact of terminal sales, but also a great impact on the industrial chain." At present, GM's domestic factories not only play a role in making cars, but also bear the overseas supply chain, so with the gradual resumption of GM factories and dealers in China, the global supply chain will run smoothly. "

In addition to General Motors and Ford, Jaguar Land Rover's UK factories had to airlift parts from China to the UK in suitcases because of concerns about a shortage of the supply chain. Although the cost of air parts is high, by contrast, the shortage of parts will seriously affect the progress of the whole automobile production.

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Some industry analysts believe that the use of air transport will indeed greatly increase the cost, and the profit can be guaranteed at 5% to 10% according to the previous shipping method, but the cost of using chartered planes to transport spare parts will increase by 10% to 30%. Even hit the bottom line. Although for multinational car companies, this high-cost model is not sustainable, but in the current crisis environment, charter transportation is a helpless move for multinational car companies in "extraordinary times".

However, there are also reports that charter parts will lead to conflicts between parts suppliers and car manufacturers, because neither side wants to bear the extra cost of charter flights.

Although in the face of the current epidemic, the sales market as far away as the Americas and Europe has not been greatly affected by the epidemic, if automakers fail to ensure an adequate supply of parts, on the one hand, it will affect the normal operation of the factory, and on the other hand, it will affect the sales market.

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