VW Idles Shanghai Plant, Scraps Plan for Staff to Sleep On Site
(Bloomberg) -- Volkswagen AG scrapped efforts to maintain some production at its Shanghai factory as lockdown measures continue to roll out in the city.
The automaker will idle the plant Friday and it will remain closed other than for maintenance work through April 5, according to a company statement sent out late Thursday. Its factories in Changchun also will remain closed until that date.
VW gave up trying to maintain some output -- mainly electric models -- in Shanghai as the government tightened controls and extended the sealing-off of some areas in the eastern part of the city after four days of Covid testing. The other part of the city, where VW's factory is located, is expected to enter the second phase of lockdown for a four-day period coinciding with when the company has decided to halt production, plus one day off for the traditional Chinese Qingming Festival holiday.
The world's second-largest automaker had asked staff earlier to prepare sleeping bags and yoga mats for sleeping at the facility as part of plans to set up a closed-loop system that would allow it to continue operating. General Motors Co. kept production running normally in Shanghai earlier this week using a similar approach.
VW operates the plant in Shanghai through a joint venture with China's SAIC Motor Corp. Its factories in Changchun, run jointly with partner FAW, has suspended operations for several weeks.
Earlier: Tesla Extends Shanghai Plant Shutdown Again as Outbreak Persists
©2022 Bloomberg L.P.
With assistance from Bloomberg
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