German auto parts supplier Bosch said on Tuesday it has suspended production at two sites in the Chinese cities of Shanghai and Changchun as it follows government policies to contain a surge of Covid-19 cases.
Bosch said it had paused production at a Thermotechnology factory in Shanghai and an automotive components site in Changchun in northeastern Jilin province.
Two other auto parts plants in Shanghai and neighbouring Taicang city are maintaining “closed-loop” operations, in which workers sleep, live and work in isolation from the rest of society to prevent virus transmission, the manufacturer said.
“We are currently seeing temporarily effects on logistics and supply chain sourcing,” Bosch said in a statement. “In this situation, we are doing everything we can to maintain the supply chains as much as possible and to serve the demands.”
China has imposed strict lockdowns to contain the spread of the highly contagious Omicron variant, including in Jilin province and Shanghai.
Auto sales plunged in March as the country’s curbs to rein in Covid-19 outbreaks took their toll, while Tesla, Volkswagen and Toyota were among automakers feeling the impact of limits on production.
The European Union Chamber of Commerce in China said on Monday it had sent a letter to the country’s cabinet detailing how the country’s Covid control measures had disrupted European companies and urged it to revise its policies, such as by allowing home quarantine for some Covid patients.
• Reuters with additional editing by Jim Pollard
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