AutoBeta(AutoBeta.net)05/02 Report--

According to the Changchun Health Commission, according to the relevant regulations of the joint prevention and control mechanism of the State Council, and combined with the current situation of epidemic situation in Changchun City, it was decided that from 15:00 on May 1, 2022, the three areas of Yuhang factory dormitory in youth street of Green Park, 3535 district of Lin Yuan Street of Green Park, and area B of Rixin district of youth street of Green Park will be adjusted from stroke risk area to low risk area. The risk level in other regions remains the same. After adjustment, the whole area of Changchun is a low-risk area.

With the improvement of the epidemic situation, the FAW Toyota Changchun plant, which stopped production for one and a half months, is about to resume work and production in an all-round way. Toyota's passenger car plant in Changchun, Jilin province, which mainly produces Toyota Rongfang RAV4 models, resumed production on May 1, Nikkei reported. Toyota said that FAW-Toyota Changchun plant has gradually resumed work on the basis of capacity adjustment from May 1, and plans to fully resume normal operation on May 4.

Affected by the epidemic, FAW Toyota Changchun plant has suspended production since March 14. According to the data, Changchun Fengyue Co., Ltd., FAW Toyota Motor Co., Ltd., located in Changchun City, Jilin Province, was established in July 2003. it is a joint venture between China FAW Group and Japan Toyota, each holding 50% of the shares. The joint venture covers an area of 979200 square meters, and the annual production capacity of the factory is 100000 vehicles. It mainly produces FAW Toyota RAV4 Rongfang models. Data show that FAW Toyota sold 860000 vehicles in 2021, falling short of its annual sales target of 880000 vehicles. From January to March this year, FAW-Toyota retail sales totaled 159397 vehicles, down 18.3% from the same period last year, mainly because FAW-Toyota stopped production at its Tianjin plant in January this year. a number of best-selling models, including the Corolla, Crown Lufang and Asian Dragons, were affected, and then FAW-Toyota's plant in Changchun in March was also affected by the plant shutdown. So far, it is not known whether FAW Toyota's production and annual sales will be affected after the shutdown of its plant in Changchun for one and a half months, after FAW Toyota plans to achieve its annual sales target of 1 million vehicles this year.

On March 13 this year, 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 from March 13." The document pointed out that FAW decided to stop production at all the five major vehicle factories, including independent brands such as Red Flag, Pentium and Liberation, as well as joint venture brands such as Volkswagen, Audi and Toyota, and initially planned to stop production until the 16th. The restart time of the production line will be determined according to the overall situation of epidemic prevention and control and the relevant requirements of provinces and cities. On April 17, the Changchun municipal government announced that all the five major main engine plants of FAW Group in Changchun had resumed work. FAW Hongqi Ulsan Plant, FAW Volkswagen and FAW Toyota had gone offline, and FAW Pentium and FAW Jiefang had completed the commissioning of the production line. a total of 7438 people have returned to work. Toyota, on the other hand, said at the time that it was pushing ahead with preparations to resume production.

In addition to FAW Toyota Changchun plant is about to fully resume production, the automotive industry focused on FAW Liberation official account understanding, after 52 days, FAW Liberation also fully resumed production today. In this regard, FAW Jiefang said: "it is necessary to use the shortest possible time to recover the delayed progress, make up for the tasks left behind, and grab back the lost time."

FAW Group is an important pillar industry in Changchun City and even Jilin Province. Data show that FAW Group has accumulated sales of 3.5 million vehicles and operating income of 707 billion yuan in 2021. For this year's annual sales target, FAW Group has set a target of 4.1 million vehicles, an increase of 17.1% over the same period in 2021, of which FAW-Volkswagen will bear 2 million vehicles, FAW Toyota will bear 1 million vehicles, FAW Red Flag will bear 45-500000 vehicles, and FAW Pentium will bear 100000 vehicles. However, under the impact of the sudden epidemic, it is still unknown whether FAW will be able to achieve its annual sales target on schedule this year.

In fact, FAW Group is far from the only car company affected by the epidemic. Since March, a number of car companies have been forced to press the "pause button" because of the spread of the domestic epidemic. As a result, the production and sales of many whole vehicle enterprises have been hit hard. Among them, some factories such as FAW, Tesla and SAIC have stopped work one after another, and the auto parts industry chain in Jiangsu, Zhejiang and Shanghai has also shut down. Mercedes-Benz, BMW, Lulai, Great Wall and other vehicle enterprises also stopped production. On April 21, the cut-off of the automobile industry chain also spread to Guangzhou, and Toyota, Honda and Nissan also partially stopped production. According to incomplete statistics, affected by the epidemic and supply chain disruptions and other factors, more than 1000 Shanghai automobile industry chain enterprises stopped production to varying degrees.

However, fortunately, after entering late April, a number of car companies have resumed work and production, and the "whitelist" of auto-related enterprises has also been promoted one after another. According to the concerned statistics of the automobile industry, 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). All district governments, streets and parks should actively support enterprises to resume work and production, of which 249 are related to automobiles. Including SAIC Volkswagen Automobile Co., Ltd., SAIC Group Lingang passenger car Factory, SAIC General Motors Co., Ltd., Tesla (Shanghai) Co., Ltd., and other vehicle manufacturing enterprises in Shanghai, etc. On April 18, SAIC passenger cars, SAIC Volkswagen, SAIC General Motors, Huayu Automobile, Anji Logistics and other vehicle, spare parts and logistics enterprises launched stress tests for resuming work and production. On April 19th, Tesla's Shanghai plant, which had stopped production for more than half a month, resumed production. BMW issued a statement on April 19 that its two plants in Shenyang, Liaoning had fully resumed production. On April 22, the Yongchuan plant in Chongqing, where the tank brand is responsible for producing tank 300 models, resumed production.

On April 28, the Shanghai Municipal Economic and Information Commission issued a notice on the "whitelist" of the second batch of enterprises returning to work and production. Judging from the contents of the notice, the second batch of "whitelist" similar to the first batch also contains a large number of automobile and automobile industry chain enterprises, of which 1192 enterprises are reported in the second batch of "whitelist" to ensure the supply of spare parts. The chip industry is also the focus of the second batch of "whitelist", with Ziguang Changshou (Shanghai) Integrated Circuit Co., Ltd., Huada Semiconductor and Qualcomm Enterprise Management (Shanghai) Co., Ltd. on the "whitelist". American automotive chip company on Semiconductor is among them. On April 30th, Zhang Hongtao, chief engineer of the Shanghai Economic Information Commission, said that the resumption rate of the first batch of "whitelist" enterprises was more than 80%, and the whole vehicle factories of SAIC and Tesla were steadily off the line. SMIC and Huahong Group capacity utilization continued to maintain more than 90%, effectively driving the relevant supporting enterprises to resume work and production.

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