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The Cities of Car Engine Restarts, More than 200 Manufacturers Resume Production

Mar 26, 2020 | By

The Wuhan Economic and Technological Development Zone (also known as Chinese car capital), which has been hit by the new crown pneumonia epidemic, has resumed work and resumed production with more than 200 automobile and component companies following the recent improvement in the local epidemic situation.

China News Agency reported that the Wuhan Development Zone was built 30 years ago with the establishment of a Sino-French joint venture Shenlong Automobile Company. Today, it has gathered 7 automobile manufacturers, 12 automobile assembly plants, and more than 500 auto parts companies, and is known as "China's car capital".

Affected by the Spring Festival holiday and the new crown pneumonia epidemic, companies in the area have stopped work and production since mid-January. The dynamic epidemic situation of the Wuhan Municipal Health and Health Committee showed that as of March 22, there had been no new confirmed cases in the local area for 5 consecutive days. While the government is actively responding to the epidemic, it has helped enterprises resume work in an orderly manner.

Dongfeng Honda executive deputy general manager Zheng Chunkai said that the company has three OEMs in the Wuhan Development Zone and that it has resumed production and production last week. It now implements single-shift production and employs about 5,000 people and has accumulated more than 1,000 cars.

He said that in the early stage, it was in a state of resumption of production and warming up, and adhered to "primarily epidemic prevention and quality first", mainly because the production line could be started to make employees skilled. Beginning on the 23rd, the three factories will jointly start ramping up production and strive to move from full production to single shift. It is expected to recover 50% of normal production capacity this week.

Zheng Chunkai admits that the flow of people, logistics, and sub-suppliers are the main factors restricting the normal operation of enterprises. In order to overcome the early resumption of production, the company has recently received more than 10,000 employees through special trains, chartered cars, and other methods. Later, it will arrange arrangements to return to work according to production needs. Chengdu's five rail-to-rail transportation networks from Wuhan to Wuhan successfully opened up the logistics "locking points" in the process of resuming production.

Dongfeng Passenger Cars also resumed production recently. According to the company's party committee secretary and deputy general manager Liu Hong, on the premise of epidemic prevention and control safety and compliance, the pre-stage approach was adopted, and personnel were organized to return to Wuhan in a step-by-step manner to arrange production in a reasonable and orderly manner, and the output has gradually increased. .

The factory's production capacity can be increased from 9 vehicles per hour to 30 vehicles per hour at the beginning of the resumption, but there is still a certain gap from the normal production capacity. At the same time, the supplier's supply of materials was driven through a low tempo. As of March 22, the supplier's resumption rate was 100%.

The auto parts company-Shanghai Natiefu Transmission System Co., Ltd. has 15 production lines in Wuhan plant, and has started nearly 10 production lines. The world's leading manufacturer of drive shafts supplies 32 OEMs worldwide and accounts for 15% of China's market share. Recent products are mainly supplied to users such as Dongfeng Honda, Dongfeng Nissan, Volvo, and GAC Fiat.

"The automobile industry is a production system of the entire industry chain. Vehicles without any spare parts cannot leave the factory." Relevant persons in charge of the Wuhan Development Zone Management Committee said that around the resumed and resumed production of the automotive industry chain and personnel, as of 22nd, the district has approved a total of 229 resumed and resumed production of Dongfeng series enterprises and first-tier suppliers in the zone. Home, with an operating rate of 87.3%; coordinated the return of more than 20,000 enterprise employees to Wuhan.

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