SMM Survey of Operations at China Automakers in May

SHANGHAI, Jun 1 (SMM) – SMM recently conducted a survey of Chinese automakers with regard to their operations in May.

1. A medium-sized automobile producer in east China: This month, a total of three models were produced, with an output of 27,000 vehicles. Two shifts were operated for 8 hours. The production capacity was not fully released, and marketing promotions were still in progress. We did not build raw material inventories. It is expected that the production next month will be similar to this month, between 25,000 and 30,000 vehicles. In the future, except for pressure-bearing parts which will still use steel, other parts will use aluminium which will be lighter and thinner.

2. A medium-sized automobile main engine factory in east China: Our production and operation are normal, and the funds are normal. We are a new company, and are still developing new cars which have not been sold in the market. The models are expected to be sold in the market in the second half of this year. In the future, we will consider import and export businesses. We have no orders or finished product inventory as we have not reached mass production. Iron and steel raw materials are generally purchased once a month, and the purchase for aluminium alloys is less freqent. Our purchases are currently stable. We do not build stocks and mainly rely on suppliers to supply raw materials for parts and components.

3. A medium-sized auto parts factory in east China: Our production is normal, and sales orders are relatively stable. Basically, we only purchase finished products when there are orders. Orders in the next three months are expected to be stable. We do not import or export goods. Our cash flows are normal and inventories are acceptable.

4. A large automobile producer in central China: Currently, the orders are in normal production. Orders for new models are better than orders for old models. Our personnel are very stable and there is no problem with funding. Our orders have been brisk. We have built a small amount of stocks as steel prices fell.

5. A medium-sized automobile producer in central China: We are currently in normal production, but orders are poor and decreased month-on-month. There are adjustments in personnel, and cash is tight. Now the industry is sluggish, and orders continued to decline. We’ll see if the orders will get better in the second half of the year.

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