Chinese electric vehicle (EV) manufacturer Nio said on Saturday it has suspended production after the country’s measures to contain the recent spate of COVID-19 cases disrupted operations at its suppliers.
“Since March, the company’s supplier partners in various places, including Jilin, Shanghai and Jiangsu, have stopped production one by one for reasons related to the epidemic and are yet to recover,” the company said on its mobile app. .
“Due to the impact of this, Nio has had to shut down car production.”
The company will postpone deliveries of the EVs to users and will work with suppliers to push for resumption while complying with government COVID restrictions, it added.
China has taken strict measures to contain the spread of the highly contagious Omicron variant in several places, including Jilin province and Shanghai, which are home to factories of major auto parts manufacturers and car manufacturers.
Tesla has also suspended production at its Shanghai factory since March 28, Reuters reported, after the city began a two-phase lockdown that was later extended across the city.
Volkswagen’s joint venture plant with FAW Group in Changchun, the provincial capital of Jilin, has been closed since mid-March, while the Shanghai plant with SAIC Motor has been closed since April 1.
© Thomson Reuters 2022