China’s Covid Policies Once Again Upending Car Manufacturing
- Closed loops not the answer as supply chains being impacted
- Yamaha has also suspended operations at various plants
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Carmakers are opting to shutter their plants in China as Covid restrictions make it almost impossible to secure some components, deeming even the closed-loop systems promoted by officials as a way to maintain manufacturing during lockdowns untenable.
Volkswagen AG on Monday said a component shortage was the main reason behind a decision to halt production at a joint venture plant that it has with China FAW Group Co. in Chengdu and two of five production lines at its factory in Changchun. The German automaker doesn’t have an estimate for when output will resume and has no plans to create closed loops, a spokesperson said.