NEWS TREND
DFM's Brands Resume Production on March 30 to Make Up for Lost Three Months in Wuhan

The outburst of an epidemic temporarily halted production in Wuhan known as “Motor City”. As the epidemic is drawing to a close, a world-oriented automobile industry chain is resuming its production.

On March 26, the reporter from Jiemian News interviewed the workers at the production lines of Dongfeng Honda and Dongfeng Renault. At present, the three production plants of Dongfeng Honda in Wuhan have resumed production. Wang Xiaoxian the foreman of production workshop of the second plant told Jiemian News that, as of March 11, the production lines have been run in the manner of “running the two and pausing the one" every day. Now the plants are quite busy. The production lines have resumed production, and the production capacity is gradually climbing.

Moreover, Wang Xiaoxian also said that, as of March 23, the three plants of Dongfeng Honda are entering the single-shift climbing status, and it is estimated to climb to a single-shift full-capacity level at the end of March.

As early as March 11, the assembly production lines of Dongfeng Honda located in Wuhan Economic&Technological Development Zone have partially resumed production. Dongfeng Honda has become one of the first-batch enterprises that have resumed production in Wuhan, with its production lines running in pairs alternately.

As of the press release, the weekly production capacity of the second plant of Dongfeng Honda has resumed to 50% of its normal level. From the beginning of the first ten days of April, Dongfeng Honda will enter a double-shift production system, with its production capacity climbing further. At present, the plant's seven production workshops have been started, with its UPPH (units per people per hour) reaching 24. Wang Xiaoxian added that its output from March 11 to the present is equivalent to 40% of the previous period. Normally, its output is up to 3000 units per day. Currently, its output is up to 1300 units. At the end of April, its output is estimated to be up to 7000 units.

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Dongfeng Renault has also received the notice that the production workshops will resume production as of March 30. Zeng Huamin, a head of Scheduling Department told Jiemian News that Dongfeng Renault's administrative staff have partially arrived at their posts on March 26; at present, relevant leaders are organizing disinfection of offices and plants; all the workshops have reached the state of resuming production.

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Moreover, Dongfeng Renault also prepared for disinfecting and anti-epidemic materials after resuming production, such as masks, hand sanitizer, disinfectant fluid, body temperature gun, etc., and set up a temporary quarantine area in case of emergencies. After resuming production, the plants will strictly control the employees' density to restrict number of on-the-job workers using a grid management method, and implement a dining system based on time bands and departments.

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Dongfeng Honda and Dongfeng Renault are just a microcosm that Hubei automobile industry chain resumes production. Being one of China's most important four automobile industrial bases, Hubei province has an average annual automobile output of 2,240,000 units, accounting for 8.8% of national annual automobile output.

Taking DFM as an example, its vehicle production capacity is basically concentrated in Hubei Province, and only the plants in Wuhan, Shiyan, Xiangyang and other places have a production capacity of more than 2 million vehicles.

In addition, there are many upstream and downstream parts and components enterprises that have a direct relationship with DFM. In a broad sense, this is an automotive industry chain that leads to the world.

Recently, DFM's Epidemic Prevention and Control Command announced the latest notice of resuming production. As of March 30, the Management Department can arrange 50% of the employees to attend the company; as of April 6, all the employees are required to attend the company.

In addition, the COVID-19-related employees, including diagnosed patients, suspected patients, suspected patients who cannot be ruled out the possibility of infection, and close contacts of diagnosed patients are waiting further for notice; high-risk volunteers can take their posts after being quarantined for 14 days and tested for blood antibody; employees who have returned to Wuhan by public transport means from inside and outside of Hubei Province also can take their posts after being tested for blood antibody.

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It is learned that, currently employees' return and transportation of parts and components are rapidly recovered; current inventories of some hot-selling brands are not enough to meet the order demand; but with gradual release of production capacity, their inventories can meet rapid rebound of post-epidemic market demand.

However, compared to OEMs, the upstream supply chain still faces greater difficulty of resuming production; especially for small-sized second- and third-tier suppliers, their employees' return to their posts and logistics still cannot be solved well, which will affect production of the OEMs. The normal running of the entire automobile industry just needs the coordination of OEMs, suppliers and dealers at all levels. Any link cannot drop the ball.

The outburst of an epidemic halted previously-orderly production. Especially, epidemic-stricken Wuhan was facing a war fighting against the epidemic, as well as a war protecting economy.

Dongfeng Passenger Vehicle Company, Dongfeng Commercial Vehicle Company and Dongfeng Motor Parts And Components Group Co. Ltd. also have resumed production, and worked hand-in-hand with upstream and downstream partners, suppliers and dealers to promote production and operation, for the purpose of making up for the lost three months and winning the war fighting against epidemic.

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