The shutdown and production of the COVID-19 has caused economic and industrial impacts in all walks of life in China, and in particular has brought a series of "butterfly effects" to the global automotive industry chain. We analyzed this:
1. Delayed resumption of work caused by the epidemic has put pressure on many component companies, which is undoubtedly a severe test for them.
2. The broken supply of parts and components enterprises has not only affected the enterprises themselves, but also gradually spread to the national and even global automotive industry chain.
3. Although the current production shutdown caused by the epidemic has affected the global automotive industry chain to a certain extent, we believe that this impact is short-lived.
4. Due to the impact of the epidemic, it is expected that most automobile companies will appropriately adjust the 2020 production and sales targets according to actual conditions, alleviate the pressure on the industrial chain, reduce systemic risks, and ensure the safety and stability of the industrial chain.
5. In terms of export, auto parts companies generally have safety stocks. Delaying the resumption of work for a short time will not affect production. If the safety stocks are urgent, they can also shorten the transit time by air to achieve timely supply.
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