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EV Maker Nio Suspends Production Over Covid-19 Curbs

The company will postpone deliveries of EVs and will work together with suppliers to strive for resumption while meeting Covid-19 curbs


Chinese Electric Car Maker Nio's ET7, the company's flagship sedan during its launch ceremony in Chengdu
The NIO ET7, the flagship sedan for the Chinese electric car manufacturer. photo: AFP

 

Chinese electric vehicle (EV) maker Nio said on Saturday it has suspended production after the country’s measures to contain the recent surge of Covid-19 cases disrupted operations at its suppliers.

“Since March, due to reasons to do with the epidemic, the company’s supplier partners in several places including Jilin, Shanghai and Jiangsu suspended production one after the other and have yet to recover,” the company said on its mobile app.

“Due to the impact of this Nio has had to halt car production.”

The company will postpone deliveries of the EVs to users and will work together with the suppliers to strive for resumption while meeting the government’s Covid-19 curbs, it added.

China has been taking strict lockdown measures to contain the spread of the highly contagious Omicron variant in several places including Jilin province and Shanghai where plants of major auto part makers and automakers are located.

Tesla has also suspended production at its Shanghai plant since March 28, Reuters reported, after the city started a two-staged lockdown which was later expanded citywide.

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

 

  • Reuters, with additional editing by George Russell

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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