AutoBeta(AutoBeta.net)03/26 Report--

On March 25th, a new generation of Peugeot 2008 went offline at the DPCA Wuhan plant, meaning that the DPCA Wuhan plant officially resumed production.

According to data, DPCA was founded in May 1992. it is a passenger car production and management enterprise jointly established by Dongfeng Automobile Group and PSA Group. The company is headquartered in Wuhan Economic and technological Development Zone. There are three factories in China, among which the factory in Xiangyang, Hubei Province mainly produces engines and gearboxes, and the other two factories in Chengdu and Wuhan are responsible for producing Peugeot brand and Citroen brand.

Wuhan, Hubei province, was the epicenter of the epidemic. Wuhan officially closed the city on January 13 in order to prevent the epidemic from spreading. The resumption time of Hubei enterprises was postponed from February 14 to February 21, and then to March 11. In response to the request of the Hubei government, DPCA announced on February 20 that the company would return to work no earlier than March 11.

The epidemic has dealt a heavy blow to DPCA. According to sales data, DPCA sold 735 cars in February, with cumulative sales of 4429 from January to February, down 76.48 per cent from a year earlier.

With the gradual improvement of the epidemic situation, DPCA's three factories gradually began to resume production. DPCA Xiangyang factory and Chengdu plant fully resumed production on March 12 and March 15 respectively. With the resumption of work at the Wuhan plant, DMC is located in three major production bases in Wuhan, Xiangyang and Chengdu.

DPCA has had a tough time in 2019, with cumulative sales last year falling 55 per cent year-on-year to 113600 vehicles, only half of its annual sales target. In an effort to save sluggish sales, DPCA released a "yuan" recovery plan in September last year, with a plan to break even by 2020. With the sudden attack of the epidemic, the plan of DPCA has also been affected to a certain extent. "We are only one step away from having to withdraw from China. It's really that serious. Peugeot-Citroen board of directors said. At present, the three major factories of DPCA have resumed production one after another, but the problem of sales volume is still a difficult problem for its long-term development in the future.

In addition to DPCA, other Dongfeng car companies have also resumed production one after another, including Dongfeng Honda and Dongfeng passenger cars have been approved by the Wuhan government to resume work, and single-shift production has been resumed since March 11. Among them, Dongfeng Honda's production capacity has reached 50%. At present, Dongfeng Honda's first-tier suppliers have also resumed work at 100%. Dongfeng Honda's production is expected to return to normal next month. As for Dongfeng passenger cars, the employee arrival rate reached 93% by the 23rd, and the production capacity was restored to 24 vehicles per hour, which could reach 30 vehicles per hour by the end of this month.

According to the Hubei Daily, the overall rework rate of the first-class spare parts suppliers of Wuhan automobile enterprises has reached more than 95%, and the supply chain risk caused by the failure of suppliers to return to work has been basically eliminated. With Wuhan's major breakthrough in fighting the epidemic, Hubei car companies, parts manufacturers and car dealers have resumed operations one after another, but they will not return to pre-epidemic levels until at least May.

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