AutoBeta(AutoBeta.net)03/31 Report--

Affected by COVID-19 's epidemic situation, Dongfeng Motor Wuhan Base, which has been shut down for nearly two months, has finally become the first batch of enterprises to resume work and production a few days ago. According to CCTV, Dongfeng Honda's three major plants in Wuhan have now achieved production, and production capacity has not yet been fully restored as the top priority is still to prevent and control the epidemic.

It is understood that at present, on the premise of ensuring the safety of epidemic prevention and control, the production capacity of the three major factories in Wuhan has returned to 1/3 in the same period last year. As all three plants operate in single shifts, more than 6000 employees are on duty every day, with a production capacity of about 1000 vehicles, which is expected to reach 6000 to 7000 units according to the March capacity plan.

However, due to the long shutdown of the factory and the extreme shortage of supply, 25800 orders have been received. As a result, Zheng Chunkai, executive deputy general manager of the company, said: "many dealers do not have much inventory, and there is even one store that has only four cars in stock, and the exhibition cars are obviously not enough." However, Zheng Chunkai also said that as the epidemic situation in Hubei continues to improve, the resumption of work and production across the country is moving forward in an orderly manner, and market demand has obviously rebounded, so production needs to be increased as soon as possible.

In addition, Dongfeng Honda also plans to start double-shift production at the first and second plants in April, while the third plant is still in the single-shift production stage.

Although, on March 9, the media revealed that Dongfeng Honda, Dongfeng passenger cars and related parts suppliers of Dongfeng Motor had received approval from the COVID-19 epidemic Prevention and Control headquarters of Wuhan Development Zone (Hannan District) to resume work. After that, the relevant departments issued an orderly notice to resume work and confirmed this news. However, in the process of resuming work and production, enterprises still face a series of difficulties and problems. Including the situation of major epidemics and different levels of prevention and control, labor shortage and logistics and transportation, raw material supply, prevention and control material supply and so on.

Dongfeng Honda Wuhan base is located in the "worst-hit area of the epidemic", so the prevention and control of the epidemic must be the top priority. In order to strengthen the management of epidemic prevention and control, on the premise of doing a good job in epidemic prevention and control, the three factories will resume work and stagger production in order to avoid the gathering of a large number of personnel, ensure orderly epidemic prevention work and ensure stable quality.

Data show that Dongfeng Honda has three production plants, all located in Wuhan, Hubei Province, the main production models include CR-V, Civic, XR-V and other best-selling models. According to the production output of about 792000 vehicles last year, with an output value of 135 billion yuan, this is also the largest single industrial enterprise in Hubei. Under normal circumstances, Dongfeng Honda can produce more than 3000 units a day.

Therefore, according to Dongfeng Honda's production and marketing plan this year and the production capacity that has lost more than 40 working days, it is equivalent to causing a production loss of more than 100000 vehicles. In other words, the economic loss is as high as 25 billion yuan. It means that for every day of shutdown, Dongfeng Honda will lose 500 million yuan more. This is not the same as when Beijing Mercedes-Benz asked the government to resume work earlier, saying that it would incur a loss of 400 million yuan in one day.

In any case, the current resumption of production by Dongfeng Honda will be good news for Dongfeng Honda and its dealers. After all, as a car company that grew at a year-on-year growth rate of 13.2% in 2019, it is bound to bring huge profits to Honda and its dealers, even if the current factory fails to achieve full production, but at least it can ensure a gradual recovery in car supply.

According to Honda's February terminal sales data in China, Honda sold only 11288 vehicles in February, down 85.1% from 75907 in the same period in 2019. Dongfeng Honda sold only 3803 vehicles in February, down 89.3% from 35399 in February 2019.

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