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Aptiv Shanghai plant suspends some shipments after COVID cases

by Mike Robinson

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© Reuters. FILE PHOTO – A protectively dressed police officer watches over a bridge that leads to Pudong across the Huangpu River. This is after traffic restrictions were in place to stop the spread of coronavirus (COVID-19), in Shanghai, China.

SHANGHAI, (Reuters) – Aptiv has stopped shipping parts from a Shanghai plant which supplies Tesla (NASDAQ;) Inc and General Motors Co. (NYSE:) over the weekend after COVID-19 infection was discovered among workers. Two people who are familiar with the situation said Monday.

Tesla may be disappointed by Aptiv’s suspension of shipment (NYSE:) as it had intended for Shanghai to return to its pre-infected levels.

Aptiv did not make any comment regarding its Shanghai plant’s status or whether workers had contracted infections.

Aptiv declared that the safety of employees was our top priority. We have kept in touch with customers and we are working closely together.”

Tesla and GM didn’t immediately reply to a request of comment.

Tesla began production again at the Shanghai factory on April 19 with help from the government. This was after a 22 day closure. It is the longest such shutdown since it opened in 2019. It produces Tesla Model 3 and Model Y models for China, as well as exports.

Aptiv was approved to restart its factory late April. The company implemented a closed-loop system that isolates workers. According to a source familiar with the matter, Aptiv was not able to restart its factory in time for Tesla’s start last month. This forced it to order more wire harness inventory.

The wire harnesses connect cables together and can be extended to a maximum length of 5 km (3.1 miles) for an average vehicle. Each car is unique and cannot be constructed without it.

China’s efforts to curb its largest COVID-19 epidemic have had a major impact on the disruption at Tesla’s Shanghai plant. This has also led to a drop in vehicle sales and consumption.

China’s Auto Association stated last week that auto sales fell 48% in April due to zero-COVID lockdowns, which shut down factories and limited traffic at showrooms. This also slowed spending.

Shanghai authorities tighten a citywide lockdown that was imposed over a month ago in the commercial center with 25 million inhabitants. This move could increase restrictions on movement throughout the month.

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