AutoBeta(AutoBeta.net)04/01 Report--

On April 1, a spokesman for Volkswagen said that the FAW-Volkswagen Changchun plant was temporarily closed until April 5, while the Volkswagen Shanghai plant stopped production from April 1 to 5, according to the Shanghai Securities News and the Financial Associated Press. In response to this news, FAW-Volkswagen sources said that the time for the resumption of production at the Changchun plant is still uncertain, and it should not resume production before April 5, nor after 5 days, which needs to be arranged in accordance with the government. SAIC-Volkswagen sources said that affected by the epidemic, the supply of spare parts throughout the supply chain fluctuated to a certain extent, and SAIC-Volkswagen Shanghai plant stopped production from April 1.

Auto industry concern through the official website, FAW-Volkswagen was established in Changchun on February 6, 1991, with Audi, Volkswagen, Jetta three major brands. At present, FAW-Volkswagen has five bases: Changchun in Northeast China, Chengdu in Southwest China, Foshan in South China, Qingdao in East China and Tianjin in North China. Among them, Changchun Base is the headquarters of FAW-Volkswagen, which is located at No. 5 Anqing Road, Changchun Automobile Economic and technological Development Zone. with a total area of 1.92 million square meters, it is one of the largest vehicle and assembly parts test centers in China. The main production includes Audi A6L, Audi Q5L, Audi A4L, Maiteng, CC, Wei collar models. SAIC-Volkswagen is one of the oldest automobile joint ventures in China, which is jointly operated by SAIC Group and Volkswagen Group. The company is headquartered in Anting, Shanghai, and has a total of 6 production bases and 9 vehicle factories. Among them, SAIC-Volkswagen Shanghai plant has a total of one plant, two plants, three plants and new energy vehicle plants, all of which are located in Anting Town, Jiading District, Shanghai.

Also because of the impact of the epidemic, the five major vehicle factories of FAW Changchun have announced the suspension of production. On March 13, the Changchun Municipal Bureau of Industry and Information Technology issued a document entitled "in order to tie in with the overall situation of epidemic prevention and control in provinces and cities, FAW Group decided to stop production with a plan from March 13," and FAW Group decided to arrange for all production to be stopped in Chang five vehicle factories. According to the contents of the document, FAW Group's five major vehicle factories in Changchun City have all stopped production due to epidemic prevention and control, and originally planned to stop production until March 16 and resume production on March 17. According to annual production capacity projections, the planned suspension of production for four days will lead to the loss of about 48000 vehicles in FAW-Volkswagen Changchun plant. However, under the continuing impact of the epidemic, FAW-Volkswagen Changchun plant is still unable to resume normal plant operations in April, and the longer shutdown time also means that the delivery time of vehicles produced by the plant will be delayed.

In fact, some of the Shanghai plants jointly operated by Volkswagen and SAIC were forced to stop production yesterday. A Volkswagen spokesman said: due to difficulties in purchasing parts during the epidemic, the Shanghai plant jointly operated by Volkswagen and SAIC will be partially closed from Thursday (March 31). However, Volkswagen did not provide details at the time, including when production would resume and which parts and models would be affected.

Data show that FAW-Volkswagen sold more than 1.85 million vehicles in 2021, making it the highest-selling car company in China, while SAIC-Volkswagen ranked fourth with 1.242 million vehicles.

After entering the middle of March, the domestic epidemic situation of COVID-19 has been relatively serious. Lei Zhenglong, deputy director of the Disease Control Bureau of the National Health Commission, said today that a total of 103965 local infections were reported nationwide in March, affecting 29 provinces, showing the characteristics of many points, wide coverage and frequent occurrence. Among them, there were two provinces with more than 10, 000 cases in March, namely Jilin Province and Shanghai (Jilin Province reported more than 44000 cases and Shanghai reported more than 36000 cases).

According to the latest report of the National Health Commission, from 0 to 24:00 on March 31, 31 provinces (autonomous regions, municipalities directly under the Central Government) and the Xinjiang production and Construction Corps reported 1827 new confirmed cases and 1787 local cases. There were 1363 cases in Jilin, 358 cases in Shanghai, 16 cases in Heilongjiang, 10 cases in Zhejiang, 9 cases in Jiangsu, 5 cases in Fujian, 4 cases in Shandong, 4 cases in Guangdong, 3 cases in Henan, 3 cases in Hunan, 2 cases in Hebei, 2 cases in Anhui, 2 cases in Hainan, 1 case in Tianjin, 1 case in Jiangxi, 1 case in Sichuan and 1 case in Guizhou. Judging from the data, the current epidemic situation in Jilin and Shanghai is still quite serious.

Under the influence of the general environment of COVID-19 's epidemic situation, starting from March 28, Shanghai took the Huangpu River as the boundary, first Pudong and then Puxi, and implemented nucleic acid screening and control in batches. In the closed area, all enterprises implement closed production or home office. SAIC GM and Tesla's plants are in the first batch of closed areas, which began in the early hours of March 28 and ended at 5 a.m. on April 1. The SAIC-Volkswagen Anting plant mentioned above is in the second batch of closed areas, starting on April 1 and ending on April 5.

Prior to this, car factories in some provinces were forced to stop production. On March 22, due to the control of the epidemic in Shenyang, brilliance BMW Shenyang Dadong plant temporarily suspended production. The person in charge of brilliance BMW said: "in order to better respond to Shenyang's unified call to coordinate epidemic prevention and control and ensure local economic and social development, brilliance BMW has made every effort to ensure the health and safety of its employees." always arrange the production and operation of the Dadong factory in a prudent and orderly manner according to the needs of business and epidemic prevention. Also because of the requirements for the prevention and control of the epidemic, Tesla's Shanghai factory suspended production for two days from March 16 to 17, and resumed production on March 18, but it only resumed production for 10 days, and Tesla's Shanghai factory was faced with suspending production because of the Shanghai epidemic. Tesla's Shanghai plant had planned to resume production today, but Tesla's Shanghai plant was extended by one day to April 1 because Tesla was unable to transport the assembled electric vehicles outside Pudong, Reuters reported.

As of March 27, the global auto market has lost about 1.2548 million vehicles due to chip shortages, according to AFS. AFS expects cumulative production cuts in the global car market to climb to 2.0017 million this year. At present, the shortage of spare parts supply in the automobile industry still affects the production of automobile companies, and the epidemic factors have also forced some factories to shut down. Under the double impact, it is expected that the performance of most domestic automobile companies in the past two months will be affected to varying degrees.

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