The Outbreak Of The Epidemic Hit The Global Auto Industry, And Many European And American Car Companies Struggled To Stop Production And Epidemic Prevention.

In the face of the new outbreak of coronavirus pneumonia, more and more enterprises have to succumb to reality.

Local time on March 19th, the US electric car manufacturer Tesla announced that from March 24th, the Fremont factory in California will be ordered to suspend production in an orderly manner. Besides, besides the essential parts and supplies, the New York plant will also be temporarily shut down.

Fremont factory is Tesla's vehicle manufacturing base in the United States. California's local government has issued a social media report that the San Francisco Bay area will be closed for three weeks. Tesla factory is not in line with the "necessary business" defined by the local government. The implication is that the Fremont plant will be suspended for three weeks.

At that time, Tesla did not decide to shut down the most important production base, when a spokesman claimed that the plant would operate under limited capacity. But now, after several days of negotiations, Tesla also had to compromise.

The epidemic has spread all over the world. Over the past few years, a number of multinational car companies in Europe and the United States have announced a temporary shutdown of production, the production time is tentatively scheduled for two weeks, some tentatively scheduled for three weeks, and more, it is not indicated that the factory suspended operation time.

It is worrying that overseas epidemic is still spreading. Every country and region is facing different pressure of epidemic. When the epidemic will be controlled and when the alarm will be lifted, it can not be accurately estimated.

Comparatively speaking, under all kinds of efforts, the epidemic is initially controlled, and China, which has gradually resumed operation, is expected to become a "safe haven" for the global industry.

Industry experts pointed out that this argument is too optimistic, the current global automotive industry is closely linked, no base and market can be alone, and the epidemic is spreading all over the world. It will not only affect the progress of China's automobile production, but also affect the export of automobiles and parts.

Us electric vehicle maker Tesla announced that the Fremont plant in California will be temporarily shut down in an orderly manner starting from March 24th. Vision China

European and American car companies set off work tide

Tesla announced that the temporary shutdown is only a microcosm of the US car companies under the epidemic. Prior to this, Ford, GM and other traditional car companies have announced a shutdown for production.

On March 18th, the United Auto Workers Union (UAW) issued a statement saying that in order to prevent the spread of the epidemic, it has reached an agreement with three major automobile manufacturers in Detroit, namely, general motors, Ford and FCA. The latter will agree to close some factories.

Subsequently, Ford said in a statement that the company will suspend production in North American production base before March 30th, clean the facilities thoroughly to protect employees, and strengthen the prevention and control of the new crown virus. GM also issued a statement saying it will continue at least until March 30th. FCA will also be shut down until the end of this month.

It is worth mentioning that these traditional car companies, like Tesla, also had a painful "struggle" before stopping production. In fact, as early as last week, UAW had put pressure on Ford, general motors and other car companies, hoping that they could stop production for two weeks to deal with the threat of the new crown virus, but this proposal was rejected by the collective.

Later, the two sides made a certain concession, the car company agreed to reduce production and shut down the factory, but UAW also allowed the car companies to produce some "profitable" cars at a lower speed, which would reduce the loss of car companies to a certain extent in the epidemic.

But American car companies are not the only ones who go through this. Earlier, European auto factories have been closed down.

In March 16th, the Peugeot Citroen group (PSA) announced the closure of all factories in Europe. The closure time will last until March 27th, involving 15 factories. Volkswagen Group also announced in March 17th that it will close most of its factories in Europe from next week, and the shutdown will last for three weeks. The FCA, headquartered in Italy, will shut down and shut down production in most factories in Europe until March 2. 7 days.

All car companies can't escape. Data show that at present, there are more than 100 automobile factories shutting down or shutting down in the world.

Uncertainty deepens.

The stopping time and stopping time of each vehicle company are different. For example, Ford, general motors, BMW, Daimler and other car companies temporarily suspend production for two weeks, while the stop time of vehicles such as Volkswagen and Tesla is three weeks. This is related to the epidemic situation and local government regulations of the factory location, and on the other hand, the epidemic has brought great uncertainty.

The global auto industry is about to fall into a "halt". Many organizations and individuals are beginning to predict the impact of the epidemic on the automotive industry.

J.D. Power, a vehicle consultancy, recently released a report that US auto retail sales will shrink by 3 million this year, and the total sales volume may fall to 1400-1600 million vehicles. Earlier, J.D. Power predicted that the annual sales volume of the US car market could be 16 million 800 thousand, but the goal has not been achieved under the epidemic.

How much impact will the epidemic bring to the global auto industry? The industry insiders, including those in charge of car companies, say they are hard to predict.

At the annual meeting of the Volkswagen Group's 2019 line in March 17th, Frank Witt Witter, head of management and board members of the Volkswagen Group, admitted that it is very difficult and premature to predict the impact of the epidemic on sales volume. It is too early to know how long the epidemic will last and how much impact it will have on the macro-economy. IT (Frank)

In March 20th, a long-standing car consultant also said that predicting the impact of the epidemic on the industry should first predict the time when the global epidemic could be controlled. This is clearly beyond the recognition of the automotive industry.

The only thing we know is that this will bring challenges to all car companies. Stop production means evaporation of capacity. The lack of control means lack of demand, even if the scale is large, such as the public. "2020 will be very difficult. The new coronavirus has brought us unknown operational and financial challenges. " Herbert Dis, chairman of management board of Volkswagen Group, said (Herbert Diess).

Domestic automobile industry is hard to be independent

Comparatively speaking, China has become the closest place to the normal operation of the automobile industry. Last week, Hubei's enterprises began to resume work, and China's auto industry gradually recovered.

Under such circumstances, there is a view that China or become a "safe haven" for global car companies, especially parts enterprises, is expected to accelerate the convergence of the automotive industry chain to China under the special node of the epidemic.

However, this view is not recognized by the automotive industry. Cui Dongshu, Secretary General of the Federation of economic and trade unions, told reporters on twenty-first Century economic report in March 20th that the epidemic caused the temporary shutdown of motor vehicles in Europe and the United States, which would directly affect the export of some domestic parts enterprises.

In fact, the automotive industry chain has the characteristics of high global integration, long chain links and more players. It is almost impossible to complete all the supply chain layout in a single country or region. Therefore, the spread of the epidemic has a huge impact on the automotive industry chain, which is reflected in the early stage of the epidemic in China.

It should be noted that China's auto industry will also face certain difficulties when the global factories are shut down. Wu Zhao, executive director of Roland Begg enterprise management (Shanghai) Limited, told our reporter that although China's auto enterprises already had a high localization rate of parts, some components still rely on imports, such as some core components and sensors of the power system.

Therefore, at present, the major automotive and industrial chain bases including Italy, Germany, France and the United States have all announced that they will stop production and shut down, and factories will close or restrict production capacity. The impact of their initiatives on the global automotive industry chain will be gradually reflected in the coming weeks, and will also be transmitted to China's auto industry, resulting in "two shocks".

The integration of the global industrial chain determines that the automobile industry in any country or region can not be alone in the global epidemic situation. Only when the epidemic situation in the countries and regions of the world's major auto parts is effectively controlled, and production and manufacturing will return to normal, can the production and supply of all parts of the world return to the past. Wu Zhao said.

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