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Most quake-hit automakers restore production

By Hao Zhou (chinadaily.com.cn/Agencies)
Updated: 2008-05-20 13:48

"Most of the Coaster orders are from government procurement, corporate purchasing, and tourism companies, and are usually not for urgent delivery. Therefore, current sales were affected little by the halted production and so far we've been able to keep prices stable," said a source at Toyota's 4S store in Beijing's Fangzhuang area.

Other listed automobile companies in affected areas, such as Chongqing Zongshen Power Machinery Co Ltd, Sichuan Chengfei Integration Technology Corp Ltd, Chongqing Jianshe Motorcycle Co Ltd, and Kunming Yunnei Power Co Ltd, all reported no direct impact from the earthquake in statements on May 13 and 14, immediately after the devastating quake.

Sichuan Jian'an Industry Co Ltd, China's biggest mini rear axle maker, also started up again on May 15 following careful examination to its production buildings and facilities. The company is in Ya'an City, only 120 kilometers to the south of the epicenter Wenchuan, and suffered limited losses.

The situation with Brilliance Auto's Mianyang production base, which was still under construction before last Monday's quake, seems worse. Headquarters wasn't in communication with the base until last Friday, four days after the quake. "No casualties have been reported but the construction project suffered substantially," said an insider from Brilliance Auto. The first stage of the base is to have an annual output capacity of 60,000 pickup trucks, light buses, and off-road vehicles, all for export to overseas markets.

The first batch of Brilliance's new multi-purpose vehicles named the New Haice was supposed to roll off production line on August 30 from the Mianyang base for export to South Africa. "We have to suspend construction on the base due to the quake. But we will try our best to stick with the original export plan," said Qi Yumin, board chairman of Brilliance Auto.

At the same time, all the automakers that have restored production promised to help stabilize market prices after the biggest quake disaster in decades.

Zhou Qin from Changan Auto told reporters that Changan's logistics is as usual by far. "Current traffic control in the Sichuan area in to constrain private cars rather than regular transportations relating to national economic development."

"Changan Ford Mazda has two logistics systems, road and shipping transportations. Once the road is blocked, shipping transportation could also meet the demands," said a salesman of Changan Ford Mazda's 4S store in northern China area. "We have 300 vehicles in inventory, enough for one month orders."

Nonetheless, some auto dealers expressed worries about future prices. A salesman from a Changan Suzuki 4S store in Beijing Yayuncun Auto Market said: "Before the quake, we were able to deliver within seven days after receiving the order, but now that period is between 10 and 12 days."

Renowned automobile industry analyst Jia Xinguang believes demand for all kinds of commercial vehicles and trucks for farming use in Sichuan and Chongqing will be boosted in the after-quake reconstruction. But marketing expert Zhang Zhiyong disagreed. He believes that local consumption power was also stricken by the quake, which will drag auto sales growth locally.

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