Shanghai locks threaten China’s auto production TOU

Shanghai locks threaten China’s auto production


Shanghai locks threaten China’s auto production

Chinese electric car maker XPeng has warned that production will have to stop if the Govt lockdowns continue.

Chinese automakers have warned they will have to put a brake on production if tough Govt-19 sanctions continue in Shanghai, a top executive of Hawaii warned on Friday about supply chains.

These restrictions have kept Shanghai’s 25 million residents at home for weeks, forcing manufacturers to shut down operations and making it harder to reach China’s GDP growth target of 5.5 percent.

Covet eruptions across the country and cuts in economic activity have already hit the auto industry hard, with car sales down 10.5 percent in March.

“If supply chain companies in and around Shanghai could not find a way to resume work and production, all original equipment manufacturers would have to stop production in May,” XPeng President He Xiaopeng said on social media Thursday.

Xpeng poses a Chinese challenge to US electric car maker Tesla, and its chairman said businesses expect additional support from the authorities to move to Govt closures.

A top executive at Chinese technology company Huawei, which has begun working with domestic automakers in the smart automotive industry, echoed the comments on Friday, warning that the clock is ticking.

“If Shanghai is unable to resume work and production, from May, all technical and industrial companies, including the Shanghai supply chain, will be completely shut down, especially in the automotive sector!” Richard Yu, head of Huawei’s consumer and automotive division, told WeChat.

Huawei sold its first 3,000 electric vehicles in March with the company’s HarmonyOS operating system.

The team has been working with automakers to supply intelligent auto parts, but not to make their own cars.

Covit bans have also affected global brands, with Volkswagen saying it has “been severely affected by the Covit-19 eruption in Changchun and Shanghai”, where German Titan’s Chinese joint ventures are located.

The company “temporarily failed to meet high customer demand”, Volkswagen Group China CEO Stephen Wollenstein said on Thursday, hoping it could offset production delays in the coming months.

China’s zero-govt policy has been increasingly hampered as the country has been battling a large number of infections since the outbreak began.

Volkswagen says its 20 percent of dealers were forced to close temporarily in March alone as a result of lockdowns.

Tesla’s multi-billion dollar “Gigafactory” in Shanghai, which the company calls its core export hub, is also said to be closed.

Chinese electric vehicle maker Neo said last weekend that it had halted vehicle production as business partners stopped operations in virus-affected areas such as Jilin and Shanghai.

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                                        Tesla exports only 60 cars to China in March after Govt hit the automotive sector
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