Photo: autoevolution
As if the chip shortage wasn’t already enough, the global health crisis seems to continue, this time causing more problems for companies running manufacturing operations in China.
Toyota and Volkswagen are two of the biggest names that are now trying to cope with a new set of restrictions announced by the Chinese government earlier this week.
Both companies have already suspended their local production, hoping everything would return to normal when the lockdown is supposed to come to an end next week.
Volkswagen, for example, is part of a joint venture with China-based FAW Group. The two are building cars in Changchun, one of the regions that have been targeted by the new government restrictions. The local plant, which produces vehicles and various other components, is set to come back online on Wednesday, but the resuming of operations could be pushed back if other restrictions are announced.
Toyota is also working with FAW as part of a separate joint venture, and just like rival Volkswagen, it has suspended the operations at the Changchun plants. On the other hand, Toyota is also operating other facilities in Tianjin, and the Japanese company confirmed no disruption has been recorded for this plant.
The Chinese struggle will mostly impact the local operations of the affected companies, but on the other hand, some are concerned that similar restrictions could soon be announced in other regions as well.
At the same time, most companies, including both Toyota and Volkswagen Group, stopped their production in Russia and abandoned the exports to the country following the invasion of Ukraine.
At this point, it’s hard to estimate when things could return to normal, but at first glance, the Chinese lockdown, the Russian sanctions, and the chip shortage problems are all creating a mix that’s wreaking havoc in the automotive industry, making it harder and harder for companies to cope with the disruptions in their daily operations.
Both companies have already suspended their local production, hoping everything would return to normal when the lockdown is supposed to come to an end next week.
Volkswagen, for example, is part of a joint venture with China-based FAW Group. The two are building cars in Changchun, one of the regions that have been targeted by the new government restrictions. The local plant, which produces vehicles and various other components, is set to come back online on Wednesday, but the resuming of operations could be pushed back if other restrictions are announced.
Toyota is also working with FAW as part of a separate joint venture, and just like rival Volkswagen, it has suspended the operations at the Changchun plants. On the other hand, Toyota is also operating other facilities in Tianjin, and the Japanese company confirmed no disruption has been recorded for this plant.
The Chinese struggle will mostly impact the local operations of the affected companies, but on the other hand, some are concerned that similar restrictions could soon be announced in other regions as well.
At the same time, most companies, including both Toyota and Volkswagen Group, stopped their production in Russia and abandoned the exports to the country following the invasion of Ukraine.
At this point, it’s hard to estimate when things could return to normal, but at first glance, the Chinese lockdown, the Russian sanctions, and the chip shortage problems are all creating a mix that’s wreaking havoc in the automotive industry, making it harder and harder for companies to cope with the disruptions in their daily operations.
Google News