Saturday, July 13, 2024

NIO suspends production from two factories due to Covid-19 restrictions : report

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According to a report by local news outlet 36kr, NIO has closed two of its production facilities in China to help stop the spread of COVID-19.

The two production facilities that have been shut down are in iHefei, Anhui province, which has resulted in several delays in the delivery of electric vehicles to consumers.

By mid-October, NIO had to implement COVID-19 prevention measures which kept the JAC NIO F1 factory closed for between 3 and 5 days.

The closure turned out to be extended which ultimately affected the production and delivery of electric vehicles that were later than scheduled.

NIO’s production problems were also exacerbated when the F2 factory was also recently closed, and their facility in the Hefei Economic and Technological Development Zone was under closed control. (via StreetInsider)

Due to a series of closures of NIO’s production facilities, some customers did not receive their new cars in October. Several customers reported they were supposed to take delivery last month, but were told by NIO that their car was not yet in production.

Some of the customers who experienced delivery delays were reportedly told they would get their electric vehicles in November.

NIO did not specifically address the shutdown when announcing their October shipment figures this morning, except to say that “production and deliveries are constrained by operating challenges at our factories as well as supply chain volatility due to the COVID-19 situation in certain regions of China.”

During October NIO reported 10,059 deliveries, down 7.5% compared to September.

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