Per reporter: Huang Xinxu Per editor: Pei Jianru
"At present, the output capacity of Bosch after the resumption of work and production is about 30% to 75%, and the situation of each product and each factory is different, and it is difficult to fully explain the proportion of resumed production." We (the factory) are not completely disconnected, but it is certainly insufficient output to meet the needs of the market. On May 10, Chen Yudong, president of Bosch China, talked about the current resumption of work and production in an interview with the Daily Economic News reporter.
In mid-March, after the outbreak of the epidemic in Shanghai, many enterprises in Shanghai pressed the "pause button", and Bosch's production was also affected. Recently, with the gradual control of the epidemic, the Shanghai Municipal Commission of Economy and Information Technology has issued two batches of "white lists" for resuming work and production, involving about 2,000 enterprises, and Bosch is also a "white list" of enterprises.
Image source: Daily Economic News Infographic
"The automotive supply chain involves a lot of enterprises, and we and our tier 1 suppliers are basically in the 'white list' of resuming work and production issued by Shanghai, but our tier 4 to 5 suppliers may not be on the 'white list'." If they can't return to work, our product production will also be affected. For example, we have a coating supplier that is relatively small, and it was difficult to resume work before, which affected the production of the entire chain. Later, we also helped it to resume work through various coordinations. Chen Yudong said.
The reporter learned that Bosch has more than 40 direct suppliers and hundreds of indirect suppliers. In order to ensure production, Bosch has communicated with the relevant government departments on supply chain. At present, more than 30 of Bosch's direct suppliers have resumed work and production, and the rest of the direct suppliers are gradually resuming work.
Chen Yudong said that at present, the automotive supply chain still belongs to the "small scope" of resuming work and production. "Many factories in the automotive supply chain are in closed-loop production, with thousands of employees locked up in the factory, employees need to eat and stay in the factory, and the daily operating costs are very high. Moreover, many factories are in a state of insufficient operation, which will affect the output of the entire industrial chain. In May, Bosch's output will certainly not meet the market demand, and we are also working hard to promote the resumption of work and production of the industrial chain. Chen Yudong said.
It is worth noting that the chip supply problem that has been in short supply has not yet been alleviated. Under the epidemic in Shanghai, the pressure on chip supply is also further expanding.
"From March to April, due to the epidemic, the rhythm of the 'tracing chip' of the main engine factory slowed down a little, but after entering May, the main engine factory began a new round of 'tracing chip'. Frankly speaking, the chip supply situation in May will not be optimistic, and the overall chip supply situation will be difficult. Chen Yudong said that the current chip supply has not returned to the state before the "lack of core" crisis. Especially in the context of the rapid development of new energy vehicles, the demand for automotive chips is constantly increasing, which also exacerbates the industry's "lack of core" situation to a certain extent.
Image source: Visual China
Like other auto parts, the chip, as one of the parts of the car, also has an "amplification effect". Chen Yudong said: "If a 10 yuan chip is not supplied, it may cause the supply of hundreds of yuan of controllers and other products, which may lead to 100,000 to 500,000 yuan of cars can not go offline." Especially if there is a shortage of key products such as ESP, there is no way for the car to defect off the production line. ”
The reporter learned that in order to meet the needs of the main engine factory, Bosch is expanding the chip production capacity. Previously, Bosch said it would invest more than 400 million euros in 2022 to expand the size of semiconductor factories in Dresden and Reutlingen, Germany, to solve the global chip shortage.
"We are also actively guaranteeing supply. As long as the chip comes out of the packaging and testing factory, our procurement and logistics team will purchase and transport at any cost, ensure that these parts are transported to our domestic factories, and quickly converted into controllers and other products to supply customers. Our customers are also squatting in our Suzhou factory and Shanghai factory, hoping that these products can be quickly transported out. Chen Yudong said.
It is understood that Bosch also has a special team in docking and tracking domestic chip companies, and has been trying and purchasing some domestic chips to alleviate the pressure on chip supply. "But some high-tech chips and key chips, in the short term, there is still no way to replace." At present, it is hoped that the supply of chips can improve in the second half of this year, then there is hope for a fundamental improvement next year. Chen Yudong said.
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