Chinese electric vehicle maker Nio suspends production due to supply chain disruptions

Chinese electric vehicle (EV) maker Nio (9866.HK) said on Saturday 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-related reasons, the company’s supplier partners in multiple locations, including Jilin, Shanghai and Jiangsu, have suspended production one after another and have yet to recover,” he said. indicated the company on its mobile application.

“Due to the impact of this, Nio had to stop car production.”

The company will postpone deliveries of electric vehicles to users and work with suppliers to work to resume while adhering to government COVID restrictions, he added.

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

Tesla (TSLA.O) has also suspended production at its Shanghai factory since March 28, Reuters reported, after the city launched a two-stage lockdown that was later extended citywide.

Volkswagen’s joint venture plant with FAW Group in Changchun, the provincial capital of Jilin, has been closed since mid-March, while its Shanghai plant with SAIC Motor (600104.SS) has been closed since April 1.

Virginia C. Taylor