China’s Nio Delays Car Deliveries as Suppliers Face Covid Halts

Chinese EV automaker Nio Inc. said it halted car production and delayed deliveries as the coronavirus outbreak in China forced many of its suppliers to suspend manufacturing.

Deliveries will be delayed for a number of customers in the near term, a spokesperson at Shanghai-based Nio said. Several of the company’s suppliers remain offline, including those in Jilin and Shanghai, both of which are under lockdown as they battle the highly-infectious omicron variant, the company said.

The disruption is yet another instance of economic impact from the nation’s strict Covid-zero policy, which it’s sticking to despite daily case counts rising to almost 26,000 on Saturday.

Tesla Inc. shut down its factory in Shanghai because of the virus situation in China’s financial hub, which has worsened despite heavy restrictions on its 25 million inhabitants. Global automakers from Toyota Motor Corp. to Volkswagen AG have also faced production halts due to the latest outbreaks in the world’s second-biggest economy.

Source: Bloomberg

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