Tesla, Nio and Volkswagen face a confusing headache
Electric vehicle deliveries from automakers in China face an unknown future as EV makers like Tesla, Volkswagen and Nio keep factories closed due to Shanghai’s Covid lockdown and related supply chain issues .
Shanghai authorities did not say when they planned to fully lift their Covid lockdown, which they implemented on March 28, although authorities lifted some restrictions in some areas on April 11, Reuters reported. You’re here (TSLA) – Get the Tesla Inc report and other electric vehicle makers thought they would shut down for perhaps four days when the lockdown was first announced, but instead were shut down for 16 days and more.
Tesla closed its Gigafactory production plant in Shanghai on March 28 after China’s largest city said it would shut down in two stages to carry out Covid-19 tests over nine days.
The Austin, Texas-based electric vehicle maker had informed its workers and suppliers of the closure of the world’s largest electric vehicle factory.
The shutdown was the second time Tesla shut production at the Shanghai factory in March after the company closed for two days on March 16 as the government tightened restrictions due to a rise in Covid cases. omicron.
Volkswagen has joined electric vehicle makers in the shutdown
Volkswagen Group China (VWAGY) – Get Volkswagen AG report and General Motors (GM) – Get General Motors company report on March 28, they declared that they would not close their factories in the Shanghai area and continued to operate. GM employees have agreed to live, work and sleep in their manufacturing plants under so-called “closed-loop” operations, which allow factories to remain open. However, on April 1, Volkswagen reversed its decision to keep its plant in the Anting district open and close it.
“During this time, we will carry out maintenance work in the factory,” a spokesperson for the Volkswagen company told TheStreet at the time. “The Covid situation in China is quite dynamic and we usually go there on a day-to-day basis.”
The spokesperson said the company had to partially halt production at Anting due to a lack of supply.
Volkswagen delivered around 45,500 electric vehicles to China in the fourth quarter of 2021, or more than 15,000 per month.
Tesla’s Shanghai factory, which opened in January 2020, delivered 65,814 electric vehicles in March and produced 56,515 electric vehicles in February, including 33,315 for export. The plant is being ramped up to eventually produce 1 million electric vehicles each year.
The factory, which produces around 2,000 electric vehicles a day, was shut down for 16 days, representing around 32,000 vehicles lost from production.
Supply chain issues add to Covid concerns
Shanghai-based electric vehicle maker Nio (NIO) – Get the report from NIO Inc. (China) on April 9, suspended production at its factory in Hefei, China, due to supply chain issues that the Covid lockdown continues to impact.
Nio announced on its mobile app that it had closed the factory after its suppliers in various cities halted production due to a Covid outbreak lockdown in Shanghai.
The shutdown was the second time Nio has closed production due to supply chain issues, as it suspended manufacturing at its Hefei factory for five working days on March 29, 2021, due to a shortage of semi -drivers.
Nio also closed its factory from September 28 to October 15, 2021 to restructure and modernize manufacturing lines and prepare to introduce new products. The shutdown resulted in the company delivering just 3,667 vehicles in October 2021, down 27.5% year-over-year.
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Toyota (TOYOF) also reportedly slowed auto production in China in March.
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