Business & Economy

Chinese automakers could suspend production due to Shanghai lockdown

Shanghai, China, Apr 15 (EFE).- Chinese automakers could be forced to suspend production in May if their suppliers in the eastern metropolis of Shanghai, which remains under strict confinement, remain unable to reactivate their factories due to coronavirus restrictions.

He Xiaopeng, co-founder and president of Xpeng, one of the main manufacturers of electric vehicles in China, said this in a message published on his WeChat social media account, quoted Friday by economic newspaper National Business Daily.

“If companies in the (automotive) supply chain in and around Shanghai cannot find a way to resume operations and production dynamically, all of China’s vehicle factories may have to suspend production in May,” he said.

Huawei Technologies CEO Yu Chengdong also said Friday the forecasts for industrial supply chains was negative due to the confinement in Shanghai.

He said all technology industries whose supply chain passes through Shanghai would be affected, which would generate “very high” economic losses, according to the Sohu news portal.

That same outlet said the “Gigafactory” in Shanghai of the American manufacturer of electric vehicles Tesla – which represents about half of the units manufactured by the company worldwide – has maintained its operations suspended since Mar. 28.

“(The first quarter) was exceptionally difficult due to supply chain disruptions and China’s ‘zero covid’ policy,” Tesla CEO Elon Musk said on Apr. 3 on Twitter.

Shanghai has maintained a strict confinement since the beginning of the month to try to stop the worst outbreak experienced in the city during the entire Covid-19 pandemic. This has been caused by the contagious omicron variant of the coronavirus, which has challenged the country’s zero tolerance Covid-19 strategy. EFE


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