BMW’s Shenyang Plants in China Have Been Halted for Two Weeks
(Bloomberg) -- BWM AG has had its production in the northern Chinese city of Shenyang halted for two weeks after the industrial hub was locked down last month in an attempt to limit the spread of Covid-19.
The German automaker has suspended production at both of its factories in Liaoning province since March 24, after the municipal government imposed stricter controls over residents starting March 22, according to a Beijing-based spokesperson.
BMW is “following the Shenyang municipal government's adjusted Covid-19 prevention controls” and “applying a staggered approach to resuming production at our plants in Shenyang,” the company said in an email.
“We will continue to closely monitor the pandemic situation, implement strict pandemic prevention measures in the workplace, and adjust our production plans accordingly,” it added, without giving more details about a resumption date.
The factories produce models including the BMW 3 and 5 Series and have a total of annual production capacity of about 700,000 units.
Shenyang's government website shows the city has been in some sort of lockdown since March 14, and that rules were tightened on March 22. Residents have been subject to waves of mandatory Covid testing and the restrictions meant only people with a negative test within 48 hours and a special permit could enter or leave their residential compound.
“The BMW factory is a key source of government tax and revenue and was kept running until the last moment,” Harald Kumpfert, Shenyang chapter chair of the European Union Chamber of Commerce in China, said during a media briefing Wednesday. “But it had to stop because the supply chain could not be maintained.”
Other foreign automakers in China are struggling too as the nation's Covid-Zero policy necessitates production halts.
Tesla Inc.'s factory shutdown in Shanghai has stretched out to at least 12 days while Volkswagen AG last week scrapped efforts to maintain some production in the financial center as lockdown measures continued.
Read more: Tesla Halted, Chips Pile Up as Shanghai Lockdown Upends Business
©2022 Bloomberg L.P.
With assistance from Bloomberg
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