Wuhan's Idle Auto Parts Makers Fall Behind Recovering Competitors
Tang Liuyang
DATE:  Feb 25 2020
/ SOURCE:  yicai
Wuhan's Idle Auto Parts Makers Fall Behind Recovering Competitors Wuhan's Idle Auto Parts Makers Fall Behind Recovering Competitors

(Yicai Global) Feb. 25 -- Certain Chinese car parts manufacturers, based in the Covid-19 epicenter of Wuhan, are struggling to keep up with the competition amid prolonged factory shutdowns.

"Some customers are looking for peers to replace us," general manager of a Wuhanese air conditioning motor firm with many overseas clients, told Yicai Global. "This is the last thing I want to see."

Central China's Hubei province, where the outbreak has killed over 2,560 people, has extended holidays repeatedly so that firms should return to work on March 11. Factories elsewhere are already picking up the pace to return to normal capacity. 

The GM, who is trapped at home, has been calling suppliers every day to inquire about their schedules. Staff, even payroll, is stuck at home, unable to deliver. Meanwhile, as the firm's inventory is running out, clients are pushing the air con motor chief to help them find new suppliers outside Hubei.

"This is part of my commitment to the customer," said the head of the company that made nearly CNY160 million (USD22.8 million) in turnover last year. January and February used to be some of the busiest months for the firm. 

Not cooperating could turn out costly. "If I don't help now, will the customer give me an order in the future? Will I turn into a backup supplier, and even a lower-level one?"

The official green light to resume work may not solve it all, according to the GM. "Some employees from outside Wuhan may be so afraid of contracting the virus that they won't get back to work."

Editor: Emmi Laine 

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Keywords:   Auto Parts Supplier,New Coronavirus Pneumonia