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Valeo CEO: epidemic will not lead to large-scale supply chain restructuring
Jul 9,2020 15:19CST
The content below was translated by Tencent automatically for reference.

SMM: it is reported that the new crown virus pandemic may change the way Valeo operates in many ways, but its supply chain will not be reconstructed.

The outbreak first broke out in China, when Chinese auto parts factories were forced to close, causing European carmakers to scramble to find alternative parts to meet the needs of car assembly lines. In view of this, European leaders have talked about bringing manufacturing home to avoid a supply chain disruption crisis.

The European Union has proposed a 750 billion euro recovery plan aimed at ensuring the EU's "strategic autonomy" in key areas.

"and a stronger value chain. Luis de Guindos, a member of the ECB executive board, and Klaas Knot, president of the Dutch central bank, argued that companies should consider moving parts of their supply chains closer to home, even if that meant higher costs.

For Valeo CEO Jacques Aschenbroich, however, shortening parts logistics routes is not part of his business plan to save the company. "if we replan and deploy the supply chain, our end customers and auto parts customers will not be willing to pay higher prices. If neither of these parties attaches importance to risk, it is impossible for the supply chain to be rearranged. " 。

In addition, Aschenbroich said, "We should not measure whether to restructure the supply chain, but should pay tribute to the current supply chain structure because of its extraordinary resilience after the Fukushima nuclear accident in Japan, the floods in Thailand and the current impact of the new crown pneumonia."

Foreign media pointed out that due to the growing importance of the Chinese market and differences in manufacturing costs between countries, the supply chain is unlikely to move back to Europe on a large scale in the short term.

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