Pay attention to the survival of parts suppliers and provide assistance in a timely manner

Release time:

2022-04-23

Following He Xiaopeng and Yu Chengdong, Li Xiang, CEO of Ideal Motors, also expressed his position on recent automotive supply chain issues.

On April 19, Li Xiang posted a message in the circle of friends, calling on car companies to analyze and investigate the survival problems of small and medium-sized parts suppliers in advance, and provide assistance in a timely manner.

Li Xiang said: "In this round of Omicron's epidemic, in addition to solving the problem of parts supply in front of them, all auto brands have to do a special management job: analyze in advance what you never need to manage. Small and medium-sized parts suppliers, including Tier 3, Tier 4, and Tier 5, are facing the problem of survival in this epidemic. In short, analyze and investigate in advance, and coordinate with Tier 1 and Tier 2 suppliers, and those supported by the aid will act decisively."

Due to the high complexity of automotive products and their long and complex supply chains, there are often a large number of next-level suppliers behind the suppliers. Among them, the first- and second-tier suppliers are generally automotive system suppliers and assembly suppliers, such as Bosch, Continental and other multinational giants, while the third- and fourth-tier suppliers are auto parts and component suppliers, mostly small and medium-sized enterprises.

Previously, car companies generally only had close contact with first-tier suppliers. In recent years, due to frequent supply chain problems such as core shortages, many car companies have made efforts to reach out to secondary suppliers. However, as far as the current situation in the industry is concerned, car companies have generally not yet reached the third or fourth tier suppliers.

Affected by the epidemic, since March, the shortage of auto parts has become a common phenomenon, and many car companies have announced that they will stop production. He Xiaopeng, Yu Chengdong and others have also expressed concerns about the automotive supply chain.

On April 9, Weilai Automobile stated on its official APP that since March, due to the epidemic, the company's supply chain partners in Jilin, Shanghai, Jiangsu and other places have successively stopped production and have not yet resumed. Affected by this, Weilai's vehicle production has been suspended.

On the evening of April 13, the tank brand of Great Wall announced that due to the impact of the epidemic, a total of 8 suppliers of the Tank 300 model were involved in the shutdown and suspension of operations. Affected by this, the production of the Tank 300 will be suspended from April 14, and the delivery of vehicles will also be delayed.

On April 18, the relevant person in charge of a certain level of auto parts suppliers also told The Paper that their factories are currently facing the problem of lack of parts supply, and some products have been suspended due to lack of raw materials.

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