Chinese Car Parts Makers Resort to Charter Flights to Supply Global Clients
Zhang Yushuo
DATE:  Mar 02 2020
/ SOURCE:  yicai
Chinese Car Parts Makers Resort to Charter Flights to Supply Global Clients Chinese Car Parts Makers Resort to Charter Flights to Supply Global Clients

(Yicai Global) March 2 -- China's auto parts manufacturers have joined hands with logistics firms to deliver their products to Ford Motor, General Motors and other international clients using charter flights, an emergency step intended to get around the disruption caused by the coronavirus epidemic.

SAIC Motor's SAIC Anji Logistics has arranged 16 charter flights to bring parts, sourced from firms in Shanghai and Chongqing, to GM's plants in North America, Brazil, and Argentina, The Paper reported today. The Shanghai-based carmaker's delivery arm will also fly parts to Ford's two factories in Thailand within a week.

Charter flights are an emergency measure, the car logistics company told The Paper. Later on SAIC Anji will return to using its main means of transport, shipping, complemented with occasional cargo flights.

Chinese factories are slowly getting back to work following the prolonged Chinese New Year holiday due to the virus, restoring global supply chains. Despite the delays, many experts note that the position of Chinese businesses at the core of global supply chains will remain unchanged. 

It usually takes several years to forge supply chain partnerships so replacements are not fast, Du Daofeng, director at the China Association of Automobile Manufacturers, told The Paper. The government has been boosting its measures to control the virus outbreak and car parts makers have been gradually increasing their production, Du added.

The quality of Chinese auto parts is quite good and the companies are well-managed, which is advantageous, said Deng Xue, deputy head of Tianfeng Securities Research Institute.

Editor: Emmi Laine

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Keywords:   Charter Flights,Novel Coronavirus Pneumonia