AutoBeta(AutoBeta.net)03/17 Report--

The impact of the epidemic on the domestic automobile industry is sustained. In the face of the challenges posed by the epidemic to car companies, many car companies and even used car e-commerce platforms have announced salary cuts to reduce the operational challenges of the epidemic, including SAIC, SAIC-Volkswagen, Jiangling, Weima, Youxin, Guazi and other used car platforms, but GAC GROUP refused to reduce the risk of the epidemic to the company in this way.

Zeng Qinghong, chairman of GAC GROUP, said through an online press conference that the company lowered its forecast for car sales this year from 8 per cent to about 3 per cent as a result of the outbreak of a new type of pneumonia that brought production to a standstill last month.

It is understood that GAC GROUP's cumulative sales reached 2.06 million vehicles in 2019, and the original plan was to increase sales by 8 per cent (that is, 2.22 million vehicles) in 2020. Due to the epidemic, GAC GROUP's sales volume dropped sharply in the first two months, and GAC GROUP will drop from 8 per cent growth to 3 per cent (2.12 million vehicles).

Judging from Zeng Qinghong's "official declaration", GAC GROUP is more humane than the policies implemented by other car companies. GAC will not reduce employees' salaries, but will also take a series of measures to control costs, including reducing management expenses, lowering business accommodation and transportation standards, and more pragmatic measures such as design expenses. At the same time, under the premise of ensuring the overtime expenses of employees, overtime production will make up for the lack of production capacity caused by the lack of personnel. In the future, employees will work overtime and work six days a week.

Zeng Qinghong said that the resumption rate of GAC's production enterprises is about 60 per cent, and the group has about 180 suppliers in Hubei province. due to the suspension of production in Hubei province, it is difficult for GAC to recover to 100 per cent. GAC GROUP, which has 2546 suppliers and 2562 dealers, plans to extend working hours at the plant in order to return to pre-epidemic levels as soon as possible.

According to the production and sales data released by GAC GROUP in February 2020, GAC GROUP's production and sales in February were 17313 and 19347 respectively, down 82.67% and 81.08% respectively from January to February to 195618 vehicles, down 37.30% from a year earlier. Among them, Guangzhou Auto Toyota sold 5500 vehicles in February, down 79.78% from the same period last year, and 31.60% from the same period last year; Guangzhou Automobile Honda sold 7143 vehicles in February, down 83.02% from the same period last year and 40.46% from the same period last year; GAC MOTOR sold 5678 vehicles, down 72.08% from the same period last year, and the annual sales volume was down 23.72% from the same period last year. GAC Fick sold 316 vehicles in February, down 93.45% from a year earlier, and annual sales fell 83.05% from a year earlier. GAC-Mitsubishi sold 350 vehicles in February, down 95.00% from a year earlier, and annual sales fell 54.84% from a year earlier.

In order to promote the growth of sales, after the introduction of relevant car purchase policies in Guangzhou, GAC GROUP's brands also issued corresponding car purchase policies to stimulate sales.

GAC NE subsidizes another 10,000 yuan for car owners who buy GAC NE Aion S in Guangzhou, and launches a number of financial programs and services, including door-to-door test driving, protective gifts, and free upgrading of CN95-class air filtration.

GAC Toyota has introduced eight car purchase subsidy programs to meet consumers' car purchase needs, including an additional subsidy of 2000 yuan for medical and medical personnel, police personnel and military personnel, and a comprehensive subsidy of up to 20000 yuan for the purchase of new energy vehicles. the maximum subsidy for replacement cars is 8000 yuan, and the additional subsidy for hybrid models is 3000 yuan. In addition, it also includes four years of free maintenance of 100000 kilometers, so as to stimulate consumers' enthusiasm for buying cars.

In response to the Guangzhou government's strong support for revitalizing automobile consumption, Guangzhou Auto Honda also launched a car purchase replacement subsidy policy, totaling up to 36000 yuan, including VE-1, Odyssey hybrid, Accord and other models to further boost car consumption.

According to data from the China Automobile Association, from January to February this year, car sales fell 42% from the same period last year, while GAC GROUP fell by 37.30%. Although it is lower than the market decline, sales are still significantly lower than the annual sales. Zeng Qinghong said that after GAC GROUP's full return to work, the downstream dealers will be exempted from the assessment task in the first quarter to help tide over the difficulties together.

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