The two production bases of Great Wall Motor Co., Ltd. on the mainland will stop production due to chip shortage, and the discontinued models include popular models such as Great Wall Tank 300.
According to a report by China Business Network on April 23, the two production bases of Great Wall Motor Factory in Yongchuan and Xushui on the mainland have stopped production because of chip shortage. A source close to the company revealed, “The production stoppage in May and June will affect a number of popular models, including the Haval H6, Great Wall Cannon and Tank 300.”
Data show that in the first quarter, Haval brand accumulated sales of about 222,700 units, an increase of 110% year-on-year, of which Haval H6 accumulated sales of about 112,900 new vehicles, accounting for as much as 50%; Great Wall pickup truck accumulated sales of 59,400 units, of which Great Wall gun accumulated sales of 32,300 units; tank 300 in March part of the time period suspended to take orders, the quarter accumulated sales of new vehicles 14,300 units.
All of the above models are the main sales force of Great Wall’s brands. Once discontinued, will undoubtedly constitute a huge impact on market sales.
The source revealed that in order to buy the chip, Great Wall Motor’s leaders also sweep the world during the Yellow New Year and have been talking to suppliers about the supply of chips.
Some industry sources said that since the second half of last year, the shortage of chips in the mainland automotive industry has been a problem. Now the Great Wall two production bases to stop production, showing that the mainstream car manufacturers like the Great Wall is indeed experiencing a chip shortage.
And the chip shortage is not a car company of Great Wall Motors at the moment encountered difficulties.
In December last year, FAW-Volkswagen and Shanghai Volkswagen were the first car companies to suspend production at some of their plants due to chip shortages. On March 26 this year, Azera announced to the public that production at the Azera plant in Hefei JAC would be suspended for 5 working days from March 29 due to a chip shortage, resulting in a reduction in Azera production and an increase in customer pick-up time from 2 to 4 weeks to 4 to 8 weeks.
The current chip shortage has had a major impact on the mainland manufacturing industry, with some companies seeking chips at great cost.
Mainland First Financial reported on April 21 that June, a former head of Samsung Electro-Mechanics, revealed that there has been panic stockpiling in the mainland semiconductor industry: “Some Chinese companies are acquiring chips on the global market at a spread of up to 20 times, which is the real environment now.”
However, because of the chip shortage, safety stocks have bottomed out, and current purchases are not guaranteed to buy the required number of chips even if prices are not taken into account and orders continue to be placed.
At present, the shortage of chips caused by the price increase, coupled with the price of some raw materials, has caused the mainland electronic products, especially white goods prices up.
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