GM, Ford Air Cargo China Parts Emergency

GM, Ford Air Cargo China Parts Emergency

Affected by the epidemic, insufficient supply of components from China, another multinational car company had to reduce factory capacity.

According to the Nikkei, starting in early March, Honda ’s two factories in Saitama will reduce production by hundreds. It is understood that the two plants with reduced production mainly produce Vezel utility vehicles and MPV Odyssey.

At the same time, in order to ensure the supply of parts and components, some companies even hesitate to spend expensive “charter flights” to rescue.

China is a major exporter of auto parts in the world. According to the data from the China Commercial Industry Research Institute, China’s auto parts exports in 2018 reached 55.12 billion US dollars. In the first three quarters of 2019, the value of auto parts exports reached 35.117 billion US dollars.

According to data from UBS, Chinese auto parts will account for about 27% of global auto production in 2019, and 8% of global auto parts exports. Japan’s auto parts imports from China account for about 37% of the total imports. Since 10 years ago, China has become the largest source of US auto parts imports.

Prior to the inauguration of the Volvo Cars North American plant, Javier Varela, senior vice president of manufacturing and logistics management of the Volvo Cars Group, revealed to reporters that at that time (June 2018), Volvo Cars ’Asia-Pacific market suppliers (including local suppliers, 620 joint ventures, partners, and international suppliers established in the Asia-Pacific region, accounting for 29% of Volvo Car’s global suppliers; 467 of them are from China, and 10% of them are North American plant supplies parts.

Although in theory, most car companies will have one or two suppliers for the same parts, but temporarily switching parts suppliers will also affect the factory’s production efficiency and market supply. In order to buffer the impact of the epidemic on global parts supply, some companies have even tried “chartering” to ensure parts supply.

Jaguar Land Rover CEO Schweder said that before the Jaguar Land Rover plant in the UK had 38 key components missing, it would seriously affect the progress of the entire car production. Although the cost of air freight parts is relatively high, in comparison, it is much faster than sea freight. When production is scarce, Jaguar Land Rover has to choose to load parts with luggage to solve the urgent needs of the British factory.

From February 25th, SAIC Anji Logistics also began to use chartered aircraft to supply emergency parts for GM and Ford, two North American multinational auto companies. On February 25, a cargo flight of China Eastern Airlines was loaded with GM accessories and took off from Pudong Airport. The flight contained 422 auto accessories and a total weight of 80.45 tons. It arrived in Chicago in the early morning of February 26 to ensure that GM North America, Supply chains at manufacturing bases in Brazil and Argentina are smooth. According to the reporter, SAIC Anji Logistics is the exclusive agent of GM in China, providing global supply chain management services, including door-to-door physical transportation services, seamless connection of order information flow and customers, and various emergency transportation. Program. During the Spring Festival, due to the outbreak of the outbreak and traffic restrictions, GM’s domestic container volume of more than 600 containers was stranded. In order to ensure the continuity of the global supply chain, Anji Logistics cooperated with SAIC-GM and GM’s global supply chain team, and ultimately chose to resume the supply chain by air.

It is reported that this time Anji Logistics planned to use the 16 charter flights to deliver all the delayed parts in time.

Except General Motors, on the same day, China Eastern Airlines CK287 cargo flight was equipped with 94-ton Ford charter parts, departing from Pudong Airport and arriving at Bangkok, Thailand at 5 pm that day to ensure the supply of components at Ford’s production base in Thailand. According to the reporter’s understanding, just the night before, these batches of parts were shipped overnight from Chongqing and other places to Shanghai.

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