On January 23, 2020, China officially announced the closure of Wuhan. Wuhan in the Hubei province is a major city in China’s auto industry. There’re 10 OEMs (Original Equipment Manufacturers) including Dongfeng Honda, Shenlong Motor, and Dongfeng Passenger Car. In 2019, their output reached 224; 10,000 vehicles, accounting for 8.8% of China’s total production capacity. In addition to OEMs, Hubei Province has more than 1,000 companies manufacturing auto parts. Auto parts suppliers such as Valeo, Bosch, and automotive sunroof maker Websto have production lines in Wuhan. Due to the impact of the epidemic, China has postponed the resumption of the Spring Festival, casting a shadow over the sluggish auto industry.
2月6日，汽车行业颇为罕见的一幕在天津发生。北京奔驰向天津武清区发函，恳求政府同意其辖区内的19家汽车零部件企业在2月10日复工。否则，“北京奔驰每天损失将达到4亿元人民币，为京津冀经济发展带来巨大损失”。零部件企业复工难，带来的停工后果是全球性的。现代汽车在韩国的7家汽车工厂将停工。 现代汽车成了首个因疫情而停工的中国以外的整车厂。除了现代，日本的雷诺尼桑也相继关闭了在日本的工厂。FCA首席执行官Mike Manley表达了自己的担忧，他们在欧洲的一家工厂可能会由于来自中国的零部件供应问题，在2月底或3月初出现停产风险。上海的特斯拉工厂将农历新年后的复工日期从1月31日推迟到2月10日，这影响了原计划于2月在当地生产的Model 3的交付计划。
**On February 6, a rather rare scene in the automotive industry took place in Tianjin. Beijing Benz sent a letter to Tianjin Wuqing District, urging the government to agree that 19 auto parts companies in its area will resume work on February 10. Else, « Beijing Benz will lose 400 million yuan per day, which will bring huge losses to the economic development of Beijing, Tianjin and Hubei. » It’s difficult for component companies to resume work, the consequences of the shutdown are global. Hyundai will suspend operations at seven car plants in South Korea. Hyundai became the first OEM outside China to suspend activities due to the outbreak. In addition to Hyundai, Japan’s Renault Nissan has also closed its factories in Japan. FCA CEO Mike Manley expressed his concern that a plant in Europe might face a risk of production shutdown at the end of February or early March due to supply problems from China. The Tesla factory in Shanghai has postponed the resumption of work after the Lunar New Year from January 31 to February 10, which affected the delivery schedule of Model 3 originally planned to be produced locally in February.
According to industry experts’ predictions, if plants affected by the virus are closed by mid-March, it will lead to a reduction of 1.7 million cars in China. According to a study released by CATARC on February 13, if the virus continues into the third quarter of 2020, it will reduce output by 0%-3% in the best case and 10% -20% in the worst case scenario. The challenge facing China now is not only to prevent the spread of the epidemic, but also a dilemma. If employees return to work, they cannot fully control the spread of the epidemic, and if they do not return, the economy will suffer huge losses.
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