AutoBeta(AutoBeta.net)03/10 Report--

Dongfeng Honda Motor Co., Ltd. and its main suppliers have stopped production almost completely since it is located in Wuhan, Hubei Province, which is the main area of COVID-19 epidemic. According to a local document, Dongfeng Honda and its suppliers have applied for resumption of work and have been approved.

The COVID-19 epidemic Prevention and Control headquarters of Wuhan Economic and technological Development Zone issued a "reply on agreeing to the resumption of work of Dongfeng Honda Co., Ltd. and its suppliers." the document shows that Dongfeng Honda and its suppliers have applied for resumption of work. Now the headquarters approves Dongfeng Honda and its suppliers to start work and resume production in stages and in an orderly manner.

According to the guidance of the local epidemic prevention and control work, all kinds of enterprises in the province should return to work no earlier than 24:00 on March 10. As a result, Dongfeng Honda's application for early resumption of work was approved on March 9, which is risky.

The document also requires that Dongfeng Honda should, in accordance with the original principle of "who employs, manages and is responsible," implement the main responsibility for epidemic prevention and control and production safety, and urge suppliers to implement epidemic prevention and control plans. we should earnestly do a good job in the protection of workers and epidemic prevention in the factory area, and strictly prevent new epidemics arising from the resumption of production.

From 0 to 24:00 on March 9, there were 17 new confirmed cases in Hubei, all from Wuhan, according to the website of the National Health Commission. There were 1152 new cured and discharged cases in Hubei (896 in Wuhan), 17 new deaths (16 in Wuhan), and 17151 confirmed cases (15732 in Wuhan), of which 4701 were severe cases (4471 in Wuhan).

Dongfeng Honda postponed the resumption of work four times. Due to the continuous expansion of the epidemic earlier, Dongfeng Honda's resumption time was postponed from February 14 to 17, followed by 24, and further postponed to this day after the release of local documents. As a result, Dongfeng Honda's Wuhan plant was shut down throughout February and early March, as well as its Wuhan suppliers.

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, terminal delivery cannot be carried out due to the inability to produce, further affecting the company's annual production and sales data.

In 2020, Dongfeng Honda sold 73597 vehicles in January, up 21.3% from a year earlier; terminal sales in February were 3803, down 89.3% from a year earlier, and will also decline sharply in March due to stagnant production.

According to Dongfeng Honda's new car plan, at least five new cars (including existing models) will be launched in 2020, including Civic hatchback version, shared 1.5L hybrid version, CR-V sharp hybrid e + (plug-in hybrid), new generation Feido sister version, and so on. Under the continuing influence of the epidemic, Dongfeng Honda's production rhythm has been forced to adjust, and the new car promotion plan will also be affected.

In addition, the passenger car company of Dongfeng Automobile Group Co., Ltd. also applied for resumption of work. According to the list of suppliers returning to work, nearly 100 suppliers will resume work one after another.

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