An easing of coronavirus prevention measures helps China's auto plants rev up

SMC

19/05/2020 03:48

By Yilei Sun and Brenda Goh
    YUYAO, China/SHANGHAI, May 19 (Reuters) - In the eastern
Chinese city of Yuyao, a group of five face-masked workers at a
Geely  GEELY.UL  auto plant, stood almost shoulder to shoulder
behind an SUV as they conducted paint and other quality checks.
    That scene would not have been possible a month ago.
    But Reuters visits to six factories including those operated
by Daimler AG's  DAIGn.DE  China venture and Japanese chipmaker
Renesas Electronics  6723.T  showed manufacturers in China have
begun to ease strict physical distancing rules as the
coronavirus outbreak is now contained. China's daily new
coronavirus cases have recently dropped to single digits.
    The most significant rule to be relaxed - in line with an
easing of guidelines by local governments - has been the
requirement that production line workers stand at least 1 metre
apart. That rule was put in place by many authorities in
February when the outbreak was at its height in China but it was
also a rule that auto industry insiders said had hamstrung
productivity.
    "Workers need to work together to check the quality of the
job," Shen Qingguang, safety manager at Geely's Yuyao plant
where some 1,000 workers build sport utility vehicles for its
Lynk & Co marque, told Reuters.
    Employees often need to work together on the final assembly
line in particular, he added. But where working close together
is not deemed necessary, the 1 metre rule still applies and
Geely office staff must work 1.5 metres apart.
    North American auto plants began reopening this week,
introducing temperature monitors for those entering plants,
personal protective equipment such as face masks and shields, as
well as revamped and deep-cleaned factory floors that emphasise
social distancing. urn:newsml:reuters.com:*:nL1N2D00DN
    Manufacturers in China are, however, several weeks or in
some cases months ahead in terms of reopening, providing a
window into how worker practices could evolve. That said,
restrictions will vary by country and region.
    For Tesla Inc's  TSLA.O  Shanghai plant, workers were
required to maintain a distance of 1 metre in February but like
many other China plants, that rule has now been eased.
    In contrast, Tesla's "Return to Work Playbook" published
this month for its Fremont, California factory calls for workers
to maintain a distance of 6 feet or 2 metres, or for barriers to
be established where that is not possible.
    At Beijing Benz Automotive Co, a Daimler venture with
China's BAIC Group  BEJINS.UL , the 1 metre rule has also been
relaxed for production line staff and workers wearing face masks
could be seen working near each other. 
    A noticeboard showed weekly production for one line making
E-Class sedans, GLC sport utility vehicles and other models had
jumped to over 4,000 vehicles from 1,100 in early February.
    Indeed, Chinese auto production is by and large back on
track, climbing 2.3% in April from the same month a year earlier
to 2.1 million vehicles. Vehicle sales also grew, up 4.4% for
their first rise in 22 months. Geely said its Yuyao plant had
managed to return to full capacity in early March.  urn:newsml:reuters.com:*:nL4N2CT1NO 
    Many strict measures are, however, still in place. At all
six plants visited by Reuters, face masks are compulsory - even
though some smaller Chinese cities have begun to relax rules
about wearing them. Workers must also have their temperatures
checked daily and factories are regularly disinfected.
    All of the plants visited, which included plants operated by
Japan's SMC Corp  6273.T , which supplies equipment for
production lines, Ningbo Joyson Electronic Corp  600699.SS  - a
maker of electronic and safety gear for cars, and Hongyu
Electric, a wire supplier for vehicles, said they have not had a
case of a coronavirus infection since February.
    At Geely's Yuyao plant, rules have also been relaxed for
lunch. Previously, workers had to sit on chairs far apart near
the production line, all facing one way with their backs to each
other.
    Now they are allowed back in the canteen, with two workers
allowed to sit at a table for four, seated diagonally apart.
There are no barriers on the table but sitting directly opposite
each other or side by side is still forbidden. Hongyu Electric
has introduced similar rules.
    Shen, the Geely safety manager, said staff at the Yuyao
plant adjusted to wearing masks and "new normal" work practices
quickly.
     "Everyone wants to be safe," he said.
    

 (Reporting by Yilei Sun in Yuyao and Beijing and Brenda Goh in
Shanghai; Editing by Edwina Gibbs)
 ((Y.Sun@thomsonreuters.com; +86 10 66271262; Reuters Messaging:
y.sun.thomsonreuters.com@reuters.net))