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Automakers Forced Into a Corner as Shanghai’s Lockdown Restrictions Bite

Other than the industry-wide semiconductor shortage and the ensuing Ukraine-Russia war, the auto industry is facing a new demon—a resurgence of the global pandemic in China. While the Asian giant is just a portion of the auto industry, it’s a critical region in manufacturing and the largest automotive market globally.
GM China Headquaters 13 photos
Photo: GM
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Over the last few weeks, the government of China has placed some strict lockdown measures to help control the spread of the health crisis. This included shutting down businesses and industries and setting up movement restrictions.

On Tuesday, a significant supplier in Shanghai joined Tesla is shutting down operations in compliance with health measures put in place to help mitigate the spread of the pandemic, Reuters reported.

General Motors Company’s joint venture based in Shanghai maintained production but had to implement an in-the-bubble arrangement that isolated its workers from the rest of the world. The plant asked its workers to sleep in the factory and got passes for trucks to continue ferrying deliveries, two sources revealed to Reuters.

Aptiv PLC, a key auto supplier in China, told its staff at one of its facilities that supply Tesla and GM’s joint venture in Shanghai to stay at home on Tuesday in compliance with pandemic restrictions.

Tesla’s Giga Shanghai, a key automotive manufacturer in the region, faces similar hurdles. Automobiles produced at this facility supply the local and European market, and shutting it down could lead to graver damages for the automaker. Reuters said the auto manufacturer would suspend production for at least four days from 28 to April 1.

According to a source, the American automaker could not secure sufficient provisions for its staff to work in closed-loop management.

On Monday, GM said its Shanghai joint venture was working as usual, with production processes rolling normally. They, however, declined to comment about any arrangements taking place in the facility.

Workers at Shanghai Aptiv’s site stayed at home waiting for further communication. The affected facility produces for Tesla and GM’s joint venture in the Asian country.
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Editor's note: Images featured are for illustration purposes

About the author: Humphrey Bwayo
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Humphrey is a car enthusiast whose love and passion for automobiles extended into collecting, writing, driving, and working on cars. He got his passion for cars from his Dad, who spent thousands of hours working on his old junky 1970 E20 Toyota Corolla. Years later, he would end up doing the same with a series of lemons he’s owned throughout his adult life.
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