Nio Facility Starts Up Again in Shanghai

The electric vehicle maker had stalled production for over 20 days due to COVID-19 lockdowns in auto-heavy Anting Town.
Apr. 25, 2022 19:41
Nio Facility Starts Up Again in Shanghai

(CapitalWatch, April 25, Hong Kong) About 25% of Nio's (NYSE: NIO; HKEX: 9866) employees have returned to the company's Auto Tech Research Center in Anting near Shanghai as of Monday.

Shanghai officials selected the electric vehicle maker's facility on Saturday as part of 60 local enterprises in Anting Town allowed to resume production. 

Nio announced April 9 that it would be temporarily halting production due to the disruptions of its supply chain partners in Shanghai, Jilin, and Jiangsu due to COVID-19. As a result, Nio suspended its production of complete vehicles and said many deliveries of new vehicles will be delayed in the near future.

As the Auto Tech Research Center reopens, factory workers are operating under closed-off management and a team has been set up to provide regular nucleic acid tests. The town is also working with companies to aid 45 auto accessory providers in restarting. 

Alongside Nio's facility,  nearly 4,000 employees of SAIC Volkswagen returned to its factory. Following pandemic safety guidance, those returning to work need to hold a 48-hour nucleic acid negative certificate and on-the-job personnel must take a nucleic acid test every 2 days.

Auto makers around Shanghai have been hard pressed by the supply chain disruptions and shutdowns caused by COVID-19 impacts. 

Tesla's (Nasdaq: TSLA) Shanghai facility also reopened last week. The factory shut down on March 28 in response to rising local COVID-19 cases, and Reuters estimated that it is expected to result in a loss of 50,000 vehicles.

EV maker XPeng Inc. (Nasdaq: XPEV; HKEX: 9868) CEO He Xiaopeng said on social media earlier this month that the company may need to temporarily halt production if its Shanghai suppliers aren't able to resume work soon. Xiaopeng said if supply chain companies in the city aren't able to resume work, all original equipment manufacturers might have to stop production in May. 

The reopening of manufacturers in Anting, officials said, will greatly assist in smoothing out the turbulent supply chains that have plagued automakers in recent months.