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GM keeps up Shanghai output with workers sleeping on factory floor -sources -Breaking

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© Reuters. FILE PHOTO FILE PHOTO The facade of General Motors Headquarters in Detroit, Michigan (U.S.A), March 16, 2021, shows the new GM logo. REUTERS/Rebecca Cook

SHANGHAI (Reuters). General Motors (NYSE 🙂 has a joint venture in Shanghai that allows workers to sleep on factory floors while trucks continue their deliveries. This is according to two sources familiar with the matter.

These measures are equivalent to a closed-loop management process. China’s financial hub asked for companies to use this approach to remain open in a lockdown of two stages to combat its COVID epidemic.

The bubble arrangement allows workers to sleep, live, and work isolated from the outside world in order to stop virus transmission. Similar systems were used to isolate event staff from the rest of the world at Beijing’s Winter Olympics.

The facilities that GM operates in a joint venture partnership with Chinese state-owned carmaker SAIC Motor Corp, that makes Buick, Chevrolet, Cadillac, and other vehicles are located east of Shanghai’s Huangpu River. These areas have been closed from Monday through Friday.

GM stated Monday that Shanghai JV is producing normally, but declined to discuss the arrangement at its plant. According to a spokesperson, the joint ventures and the company had created and executed contingency plans together with suppliers in order to reduce uncertainty around COVID-19.

GM’s Shanghai plant lines are running smoothly compared to Tesla (NASDAQ;), which Reuters said has been unable to produce for the past four days. One source claimed that GM was not able to provide enough funds for workers in order to attain closed-loop management.

Apple (NASDAQ): Supplier Foxconn, TCL Corp and Apple supplier Shenzhen Deren Electronic Co Ltd were able to maintain production in south China with closed-loop management this month after similar lockdowns at manufacturing centers such as Shenzhen or Dongguan.

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