AutoBeta(AutoBeta.net)04/17 Report--

Affected by the epidemic, Dongfeng Nissan production has been temporarily suspended in factories in many parts of the country. According to the production line schedule of Dongfeng Nissan insiders, some production lines at Dongfeng Nissan's Guangzhou Huadu factory have been suspended since April 13, while the first, second and third lines have all stopped production from 14 to 19, according to China Business report. Work will resume on the 20th of this month. Regarding the reason for the temporary suspension of production at Dongfeng Nissan factories in many places across the country, Dongfeng Nissan officials said that it was mainly affected by the epidemic in Shanghai and other places. For example, there are 83 suppliers in Shanghai, most of them are electronic products, and they are all core parts manufacturers. In addition, the person in charge also said: "because of the epidemic in Shanghai, the logistics around can not be arranged normally, which has a great impact on our production plan."

According to the concern of the automotive industry, Dongfeng Nissan passenger car Company, founded on June 16, 2003, is an important passenger car sector of Dongfeng Automobile Group Co., Ltd., with three brands: Nissan, Qichen and Infiniti. On the product line, the models sold under Dongfeng Nissan's Nissan brand include e-POWER, seventh generation Teana, 14th generation Xuanyi, the new generation Qijun, strong guest, Xiaoke, Tuda, Loulan, Xida, etc.; Qichen brand models include Qichen V, Qichen Star, T90, T60, D60, D60 PLUS, E30, D60 EV, T60 EV and so on; Infiniti brand models include QX60, QX50, Q50L and so on.

At present, Dongfeng Nissan has a number of factories throughout the country, including Guangzhou Huadu Factory, Xiangyang Factory, Zhengzhou Factory, Dalian Factory and Changzhou Factory, with an annual production capacity of 1.36 million vehicles and 1.34 million engines. Among them, Huadu factory is the earliest mother factory and the largest production base of Dongfeng Nissan. The factory is composed of one factory and two factories, covering an area of 2.475 million square meters, with an annual production capacity of 600000 vehicles. It mainly produces compact cars and entry-level models under Dongfeng Nissan, including Xuanyi, Quanta, Sunshine and other models. Xiangyang factory was established in 2002 with an annual production capacity of 250000 vehicles. It is an important production base of Dongfeng Nissan's high-end cars, mainly producing Dongfeng Nissan's Teana, Loulan, Qijun and Infiniti models. Zhengzhou factory was officially put into operation in September 2010. the annual production capacity is up to 260000 vehicles, mainly producing Xinqi Jun of Dongfeng Nissan, as well as Qichen D50, R50 and other models. The Dalian plant was officially put into production on October 18, 2014, with an annual production capacity of 150000 vehicles, mainly producing Dongfeng Nissan's SUV models.

In terms of sales, Dongfeng Nissan (including Nissan, Qichen and Infiniti brands) sold 242931 vehicles in the first three months of this year, down 16.9 percent from a year earlier, according to official data. Of this total, Dongfeng Nissan sold 67910 vehicles in March, down 33.5% from a year earlier. Specific models, the seventh generation of Teana sales of 11679 (January-March cumulative sales of 40686), new and old Xuanyi sales of 30240. Nissan's SUV series (including Loulan, Qijun, Xiaoke, Kicks and Tuda) sold a total of 15234 vehicles in March, of which Nissan sold 15234 vehicles (41675 from January to March).

From the sales data, the seventh generation Teana, Xuanyi and Xiaoke as Dongfeng Nissan's sales models, March sales of the three models showed varying degrees of decline. As for the reasons for the sharp decline in sales, Nissan China said it was seriously affected by external factors such as the COVID-19 epidemic and cross-industry shortage of raw materials. "persistent chip shortages and supply chain disruptions caused by the intensification of the COVID-19 epidemic have had a lasting impact on product production and sales," said Chuang Ping Yamazaki, senior vice president of Nissan Motor Co., chairman of Nissan's China Management Committee and president of Dongfeng Motor Co., Ltd. In addition, it also said, "We will make every effort to gradually resume production and sales in the next few months. In the short term, there is uncertainty and increasing competition in the supply chain, and the Chinese market remains strong in the long run."

So far, it is not known whether Dongfeng Nissan will be affected by the factory shutdown. In fact, affected by the epidemic and supply chain factors, a number of car companies have announced production cuts since the beginning of March, including Tesla, brilliance BMW, SAIC General Motors, SAIC Volkswagen, FAW Volkswagen, Lilly Motor and Great Wall Tank brands. He Xiaopeng, founder of Xiaopeng Automobile, wrote on Weibo on the evening of April 14 that "if supply chain companies in and around Shanghai cannot find a way to return to work and production dynamically, all vehicle factories in China may stop production in May."

In this regard, Cui Dongshu, secretary general of the Federation of passengers, said, "it should not go so far (completely stop production). Let's see how to save ourselves." Cui Dongshu said that the epidemic in Shanghai and other places is expected to bring 20% of the production loss to the domestic auto industry. At the same time, the "Jiangsu and Zhejiang emblem" zone with Shanghai as the core is also the core area for the supply of core automotive parts, and the epidemic in Shanghai will have a great impact on the supply of key parts of the automobile industry.

According to incomplete statistics, at present, more than 1000 automobile industry chain enterprises in Shanghai have stopped production and reduced production to varying degrees. In order to ensure production, SAIC is making preparations for resuming work and production. The work of returning workers and employees to and from work, service capacity, supply chain capacity, production safety, indoor and outdoor transportation and other work will be investigated and prepared. According to the guidelines for the prevention and control of the epidemic situation of resuming work and production issued by SAIC, SAIC will start the pressure test of resuming work and production on April 18, and the core parts factory driven by SAIC will gradually enter the stress test. the risks and problems that may arise will be found and resolved in a timely manner. On April 16, the Shanghai Economic and Information Commission issued the guidelines on the Prevention and Control of the epidemic situation of resuming work and production in Shanghai Industrial Enterprises (first Edition), which clearly pointed out that the governments of all districts, streets and parks should actively support enterprises to resume work and production. In response to the news, the head of Dongfeng Nissan said that this will help the enterprise's parts supply chain return to normal as soon as possible, boosting the confidence of car companies.

Since the beginning of this year, the automotive industry has faced multiple pressures such as chip shortages, supply chain disruptions and rising battery costs. As a result, the overall auto market performance is not optimistic. According to the latest sales data of the Federation of passengers, retail sales in March were 1.579 million, down 10.5% from a year earlier, a new low in March. From January to March, retail sales totaled 4.915 million, down 4.5% from a year earlier, down 230000 from a year earlier, and the overall trend was lower than expected.

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