Foreign Car Parts Makers Get Back to Work in Shanghai Amid Lockdown – Yicai Global

May 9, 2022 by No Comments

(Yicai Global) May 9 — Germany’s ZF Group, Robert Bosch and other foreign auto parts giants are resuming production in Shanghai with the support of the municipal government as the Covid-19 lockdowns paralyzing the city enter their second month.

ZF’s Shanghai plants have been granted special transport passes to allow smooth deliveries of products and raw materials, a spokesperson told Yicai Global, adding that the company is in close contact with its clients and suppliers to keep the supply chain as stable as possible.

China is ZF’s largest market, accounting for 20 percent of revenue. The Friedrichshafen-based firm has set a long-term goal of having its China sales reach 30 percent of total revenue.

Staff at Bosch’s Shanghai plants are staying at the factories in so-called closed-loop management to keep them operating. The municipal government is providing Gerlingen-based Bosch with supplies and other forms of support to ensure that production proceeds as normal.

Bosch posted record high sales of CNY128 billion (USD19.1 billion) in China last year, a gain of 9.1 percent from the previous year, according to its latest financial report. The firm is optimistic about the long-term stable development of the Chinese economy, it said. China has first mover advantage and is a leader in new energy and smart transportation in particular, so Bosch will continue to invest in key strategic fields and team up with its business partners to develop innovative technologies and products to meet rising demand in the nation.

Nine of the world’s top 10 auto parts firms have their China base in Shanghai. These are Bosch, ZF, Canada’s Magna International, South Korea’s Hyundai Mobis, Japan’s Aisin Seiki, Germany’s Continental, France’s Valeo and Faurecia as well as the US’ Lear Corp. Some 126 auto companies in Jiading, Shanghai’s core automotive district, had resumed production as of May 7.

Editor: Kim Taylor

Source: https://www.yicaiglobal.com/news/foreign-car-parts-makers-get-back-to-work-in-shanghai-amid-lockdown

Tags:

Leave a Comment

Your email address will not be published. Required fields are marked *