AutoBeta(AutoBeta.net)04/11 Report--

On April 9, Xilai abruptly announced on its APP that since March, the company's supply chain partners in Jilin, Shanghai, Jiangsu and other places have stopped production one after another and have not yet recovered because of the epidemic. Affected by this, the production of the whole vehicle of NIO has been suspended.

In response to the suspension of vehicle production, Li Bin, founder of Xilai, said bluntly: affected by the epidemic in Changchun and Hebei, we cut off the supply of some parts in mid-March, relying on some parts inventory to barely support until last week. Recently, there were outbreaks in Shanghai, Jiangsu and other places, and many partners were unable to supply goods, so they had to suspend production. This situation is not our only one, many manufacturers have suspended production. We are as anxious as everyone else and hope that the epidemic will be over as soon as possible.

Li Bin's remarks directly pointed to the current situation of the domestic automobile industry. Under the influence of the epidemic, the supply of spare parts has a serious impact, and vehicle production will inevitably lead to production reduction or even stagnation because of the supply of spare parts. At present, it is not clear when NIO will resume production, nor how much impact this shutdown will have on NIO's production and delivery, but it will undoubtedly make things worse for NIO, which has not achieved considerable delivery results in the first quarter.

Under the epidemic, there are finished eggs. "affected by the Suzhou epidemic, Bosch is expected to have a short-term impact on its manufacturing and later operations in Suzhou," Bosch told Reuters after a staff member of Bosch Automotive parts (Suzhou) Co., Ltd. was diagnosed with asymptomatic infection on February 19, according to the Suzhou announcement. The data show that Bosch is the core parts supplier of FAW, Changan, BMW, Ulai, Great Wall and other mainstream auto companies. Bosch Automotive parts (Suzhou) Co., Ltd. includes Automotive Electronics Division, chassis Control Division, Automotive Multimedia Division and equipment Manufacturing Division, and is one of Bosch's important R & D and manufacturing bases in China.

On March 8th, Great Wall released February sales, which showed that new car sales for the month were 70792, down 20.5 per cent from a year earlier. In response to the decline in sales, Great Wall explained that it was mainly due to the Spring Festival holiday and the insufficient supply of body electronic stabilization system (ESP) produced by Bosch Auto parts (Suzhou) Co., Ltd. In addition to Great Wall, Geely said when it announced its February sales that due to the shortage of body electronic stability system (ESP) chips and the impact of the Spring Festival holiday, Geely's sales fell 46.4% to 78478 vehicles month-on-month in February, but Bosch was still the main parts supplier when Geely announced that it would implement a supply chain replacement program in the second quarter of this year. The importance of Bosch to Geely car companies.

In addition to Bosch, Amboft, China's largest supplier of car wiring harness, informed workers at the Shanghai plant to be quarantined at home, which supplies Tesla and SAIC GM. It is understood that Amboft has several production bases in Jiading District, Shanghai, and is an important wire harness supplier for vehicle manufacturers such as Tesla, SAIC General Motors, SAIC Volkswagen, FAW Volkswagen, SAIC FAW, Chery, Great Wall and so on. Kunshan Huguang, Suzhou Portney and Shanghai Jinting all have factories in Shanghai. If you add in Changchun Household, Changchun Light bulb Wire Factory and several Changchun local suppliers that provide services for FAW-Volkswagen, Audi and FAW Group, the current epidemic is almost a comprehensive blow to wire harness production.

After the aggravation of the epidemic in Shanghai, Kunshan, Suzhou, Jiangsu issued notice No. 37 of 2022 on epidemic Prevention and Control in Kunshan City, which dealt a heavy blow to the automobile industry. According to the circular, the local epidemic caused by farmers' markets in Kunshan is distributed at many points, and the prevention and control situation is grim and complicated. in order to better coordinate with surrounding cities to fight the epidemic, it was decided to extend the quiet period by four days, from 24:00 on April 8 to 24:00 on April 12, 2022. It is understood that a number of printed circuit board (PCB) enterprises have gathered in the Suzhou area to provide automobile enterprises with electronic components for engine control system, body control system, chassis control system, multimedia system, navigation system, driving recorder, reversing radar and other functions, while related enterprises have successively announced that work has been suspended, and the impact on the production of automobile manufacturers can be imagined.

At present, Shanghai is a city with a serious COVID-19 epidemic in China. According to the latest report of the National Health Commission, from 0 to 24:00 on April 10, 31 provinces (autonomous regions, municipalities directly under the Central Government) and Xinjiang production and Construction Corps reported 1184 new confirmed cases, including 914 in Shanghai and 26411 new cases of asymptomatic infection, including 25173 in Shanghai. It is worth mentioning that Shanghai is an important city for the development of China's automobile industry, including SAIC, SAIC-Volkswagen, SAIC-GM, Tesla and other auto companies. According to the data, the top three cities in 2021 were Shanghai, Beijing and Chengdu, with Shanghai topping the list with sales of 736782 vehicles, up 11.51 per cent from a year earlier.

Tesla suspended production at the Shanghai plant on March 28 and was scheduled to resume production on April 1, but the plan had to be cancelled due to the continued escalation of epidemic prevention and control in Shanghai. In addition to Tesla, SAIC-Volkswagen is also particularly seriously affected by the epidemic. It is understood that SAIC-Volkswagen was forced to carry out closed-loop management production at the Anting plant twice on March 14-15 and 21-22, and the average daily production capacity of the Anting No. 1 plant fell by nearly 40% during the closed-loop period. On April 1, SAIC-Volkswagen Shanghai plant stopped production and originally planned to stop production until the 5th, but it was also postponed because of the escalation of epidemic prevention and control, and there is still no news of resuming production.

In addition, the epidemic situation in Guangzhou has also been repeated. Since April 8, 11 districts of Baiyun, Yuexiu, Liwan, Haizhu, Huadu, Conghua, Panyu, Nansha, Huangpu, Tianhe and Zengcheng in Guangzhou have issued notices for nucleic acid testing. From 0 to 24:00 on April 10, 19 new local cases were reported in Guangdong, including 18 in Guangzhou, 18 in Guangzhou and 18 in asymptomatic infection, including 9 in Guangzhou, according to the National Health Commission. It is understood that Guangzhou Auto Honda, Guangzhou Automobile Toyota, Guangzhou Automobile Eian, GAC MOTOR, Dongfeng Day and other factories have set up factories in Guangzhou, the Omicron virus infection may lead to the risk of potential shutdown of relevant car companies. Prior to this, both Nissan China and Honda China have released March car sales, of which Dongfeng Limited (including Nissan / Qichen / Infiniti) fell 33.5% year-on-year, and Honda China terminal car sales fell 33.2% year-on-year. The reason for the decline is "affected by the COVID-19 epidemic and tight supply of spare parts".

In the face of the recurrence of the epidemic, the decline in annual sales in China's automobile market in 2022 has become a foregone conclusion. Retail sales of narrow passenger cars fell 10.5 per cent to 1.579 million in March from a year earlier, and cumulative retail sales of narrow passenger cars fell 4.5 per cent to 4.915 million in the first quarter, according to the latest data from the Federation of passengers. Due to the "overall stillness" in Shanghai, Changchun, Shenyang and other cities, car sales in their cities all fell sharply, including FAW-Volkswagen by 40.2%, SAIC-Volkswagen by 34.5%, SAIC-GM Wuling by 17.8%, SAIC-GM by 40.5% and Dongfeng Nissan by 33.5%.

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