China EV maker Nio suspends production due to supply chain disruptions

Shanghai, April 10 (BNA) Chinese electric car maker Nio said it has suspended production after the country’s measures to contain the recent surge in COVID-19 cases disrupted operations at its suppliers.

“Since March, due to epidemic reasons, the company’s supplier partners in several places including Jilin, Shanghai and Jiangsu have suspended production one by one and have not yet recovered,” the company said on its mobile application.

“Due to the impact of this Nio was forced to stop production of cars.”

It added that the company will delay delivery of electric vehicles to users and will work with suppliers to seek to resume them while meeting government restrictions on COVID.

China has taken strict lockdown measures to contain the spread of the highly contagious variant Omicron in several places including Jilin Province and Shanghai where major factories of auto parts makers and automakers are located, Reuters reports.

Tesla has also halted production at its Shanghai plant since March 28, Reuters reported, after the city began a two-phase shutdown that was later expanded citywide.

Volkswagen’s joint plant with FAW Group in Changchun, the capital of Jilin Province, has been closed since mid-March, while its Shanghai plant with SAIC Motor has been closed since April 1.






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