Chinese electric vehicle manufacturer Nio has decided to suspend production amid a rise in Covid-19 cases across the country, the company announced on Wednesday. The recent spike in cases has led to widespread disruptions to business activity across China.
In order to curb the ongoing rise in Covid-19, several major cities have reimplemented lockdowns as well as stringent measures that have impacted travel. It is these measures that have fueled worker dissatisfaction at major companies such as Apple supplier Foxconn.
According to local tech news outlet 36Kr, Nio began to experience production disruptions in mid-October as a result of the introduction of stricter health guidelines. This resulted in the suspension of activities at both of the company’s factories in the central city of Hefei.
“The news that production at Nio’s factories has been temporarily suspended is true and this will have an impact on production and delivery schedules,” a company spokesperson revealed in an interview with Reuters.
This is the second time this year that production at Nio has been halted as a result of Covid-19 disruptions. In April, Nio was forced to halt production because of the suspension of activities at many of its supply partners.