Shanghai Resumes the Supply Chain of the Automobile Industry Corridor

Recent data from Jiading Customs District details the recovery of Shanghai's automobile industry. Since late April, Jiading Customs District has provided customs clearance services for 32 automobile companies. A total of 126 automobile enterprises based in Jiading industry cluster zone have resumed work and production. Changan Ford, an automotive manufacturing company, headquartered in Chongqing, has benefited from this.

Resumed enterprises, including traditional fuel vehicle companies such as SAIC and the new energy vehicles (NEVs) companies such as NIO, Pony.ai, and Refire, and parts and matching equipment enterprises ZF Friedrichshafen AG, Kostal, and Aptiv.

Ensure the timely import of raw materials

Shanghai is an important city for vehicle manufacturers, but its industrial supply chains are scattered in surrounding cities. Therefore, the clearance speed of imported raw materials in the Yangtze River Delta will affect the rate of vehicle production in Shanghai.

Various problems will occur during the resumption. ZF Friedrichshafen AG, a German auto parts giant, its ZF Foton Automatic Transmission Co., Ltd. in Jiaxing is one of the largest production bases of ZF commercial vehicle transmissions globally. To ensure the timely import of raw materials, Jiading Customs District has mastered the information of import materials in advance and handles customs clearance procedures quickly. After delivering from Shanghai Port, logistics enterprises can directly send the goods to the Jiaxing factory.

Guarantee the automobile industry corridor

Along the Yangtze River, China has a highly developed comprehensive industrial zone. Shanghai, Nanjing, Wuhan automobile industrial bases, and Chongqing automobile and motorcycle bases constitute the automobile industry corridor along the river. Due to the deep integration of the industrial chain, the central production enterprises are scattered in the Yangtze River Delta. Ensuring the Yangtze River Delta industrial chain's supply chain is crucial for Shanghai's vehicle manufacturers and parts suppliers.

Shanghai Port is working hard to ensure the stability of the industrial chain. Cosma Automotive Systems (Chongqing) Co., Ltd. mainly produces drive axle assemblies and essential automotive parts, primarily supplied to the Changan Ford plant. Shanghai Nippon Steel Trading Automotive Parts Co., Ltd. is the raw material supplier of Cosma.

At the beginning of May, Changan Ford expanded production capacity, resulting in a shortage of Cosma inventory, which required Shanghai Nippon to supply 1,533 tons of imported steel coils to Chongqing. On May 7, when this batch of imported goods arrived at the Shanghai port, the Shanghai port was affected by the lockdown, and Shanghai Nippon could not submit the paper forms for release confirmation. Jiading Customs immediately coordinated with the port to transmit the release confirmation form online and release the goods, solving the shortage of raw materials for Chongqing Ford.

Jiading Customs District has established an enterprise communication group and published several hotlines to accept corporate consultations. It has made every effort to quickly solve issues regarding the resumption of import and export problems.