Automaker Volkswagen has been forced to temporarily shut down three of its plants in China after a new outbreak of COVID-19. The city of Shenzhen in China, with a population of 17.5 million people, is one of the biggest cities that was thrown into lockdown as the country suffers from its worst outbreak of cases yet. Two years on from the start of the pandemic, China continues to pursue a zero Covid strategy.
In the northeast of the country, Volkswagen was forced to temporarily close three of its planets in the Chinese metropolis of Changchun.
According to the spokeswoman, the time lost from the closure would be covered with extra shifts, later on, to ensure that the global supply of cars is not disrupted.
Meanwhile, Shenzhen, which is considered China's tech hub, would be under lockdown at least until March 20.
Javier Blas, an author and energy expert warned that the lockdown in Shenzhen could throw global technology supply chains into chaos.
On Twitter, he said: "China placed the 17.5 million residents of the southern city of Shenzhen into a lockdown.
"This is one of the world's most important manufacturing exports hubs, particularly for electronics (and the city is the fourth world's largest container port)."
On Monday, Foxconn, which produces iPhones for Apple, announced it would be among the businesses suspending all operations in Shenzhen.
Speaking to Fortune, Foxconn noted that it has “adjusted [our] production line to minimize the potential impact” of the lockdown in Shenzhen, tapping into the company’s “diversified production sites in China.”
READ MORE: China imposes city-wide Covid lockdown – cases highest in two years
However, Bloomberg reported that the port is still operating normally.
According to VW spokesperson in Beijing, the plants in Changchun, which are run in collaboration with Chinese partner FAW, are set to remain closed for three days up to and including Wednesday by order of the Chinese authorities.
According to the spokeswoman, a VW plant, an Audi plant, and a factory that manufactures components were affected.
However, she reassured that the shutdowns would not affect the output of cars being built, as the delays would be covered by extra shifts.
https://news.google.com/__i/rss/rd/articles/CBMiaWh0dHBzOi8vd3d3LmV4cHJlc3MuY28udWsvbmV3cy9zY2llbmNlLzE1ODAyMzEvY2hpbmEtY292aWQtY3Jpc2lzLXZvbGtzd2FnZW4tb3BlcmF0aW9ucy1zaGVuemhlbi1sb2NrZG93btIBbWh0dHBzOi8vd3d3LmV4cHJlc3MuY28udWsvbmV3cy9zY2llbmNlLzE1ODAyMzEvY2hpbmEtY292aWQtY3Jpc2lzLXZvbGtzd2FnZW4tb3BlcmF0aW9ucy1zaGVuemhlbi1sb2NrZG93bi9hbXA?oc=5
2022-03-14 10:44:00Z
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