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China EV maker Nio suspends production due to supply chain disruptions -Breaking

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© Reuters. A display of a Nio electric car (EV) at the Auto Shanghai Show in Shanghai, China on April 19, 2021. REUTERS/Aly Song

SHANGHAI, (Reuters:) The Chinese electric vehicle maker Nio (NYSE 🙂 announced Saturday that it had suspended production following disruptions at suppliers due to the government’s recent COVID-19 surge.

According to its mobile app, “Since March because of reasons to do the epidemic,” supplier partners at several locations including Jilin Shanghai Jiangsu, Shanghai Jiangsu, and Jilin have stopped production and still are not recovering.

“Due to this Nio impact has had to stop the production of cars.”

It stated that the company would delay delivery of the EVs for users, and it will collaborate with suppliers to try to resume production while complying with government COVID restrictions.

China has taken strict measures to prevent the spread Omicron variant, which is highly contagious, in many places such as Jilin province or Shanghai (where major automobile part manufacturers and other automakers are situated).

Tesla (NASDAQ) also stopped production at the Shanghai plant from March 28th, Reuters reported. This was after the city initiated a two-stage lockdown that was then expanded to all areas.

Volkswagen (DE) has closed its joint venture plant in Changchun with FAW Group, which is the provincial capital Jilin. Its plant in Shanghai, with SAIC Motor, has been open since April 1.

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