Friday, July 26, 2024

NIO suspends production after supply chain partners to shut down production due to Covid

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NIO has become the latest electric vehicle manufacturer to halt production due to the increasing number of COVID-19 infections in China.

Previously, Tesla’s Giga Shanghai also halted production activities due to the lockdown policy in Shanghai.

NIO said it had stopped production of their electric vehicles because partners in the supply chain had stopped production due to COVID-19.

Since March, partners in NIO’s supply chain in Jilin, Shanghai, Jiangsu and other locations have suspended production due to the Covid outbreak.

“Due to these factors, production of NIO vehicles has been suspended. There will be delays in vehicle deliveries for many customers in the near future, and we ask for your understanding.” said statement in the NIO app.

In the statement, NIO will work with supply chain partners to resume production and deliver vehicles as quickly as possible by meeting Covid-19 control requirements.

NIO has its headquarters in Shanghai, where it went into lockdown two weeks ago. Meanwhile a production facility in Hefei, Anhui province, is not on lockdown for now.

The lockdown in Shanghai has kept the Giga Shanghai in the region out of operation since March 28. It is not yet known when Giga Shanghai will resume operations. The closure is the longest since the opening of the Shanghai Giga in 2019.

FAW-Volkswagen’s Changchun plant and Shanghai’s SAIC-Volkswagen plant have also temporarily suspended production of their vehicles due to the same problem.

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