Toyota, Volkswagen and Tesla factories in China have begun to reopen

Hong Kong
CNN Business
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Toyota and Volkswagen are gradually returning their factories in China, after they were closed for weeks Because Covid lockdowns.

Toyota

(TM) On Monday, it said it was preparing to resume operations in Changchun, Jilin Province – one of China’s largest auto manufacturing centers – after a month-long halt.

“We have been gradually preparing to resume operations at our Changchun plant since late last week,” the Japanese automaker said in a statement. “However, the timing of the full operation has not been determined,” she added.

Toyota suspended production at its Changchun plant on March 14.

Volkswagen

(VLKAF) On Monday, it resumed production at its factories in Changchun, which also closed in mid-March.

But its Shanghai plant, which it runs in partnership with state-owned automaker SAIC, remains closed.

SVW Anting Factory Feasibility [in Shanghai] Volkswagen said in a statement that the appeal is under evaluation.

Tesla was reportedly preparing to resume production at its Shanghai factory on Monday after a three-week hiatus Reuters.

Tesla did not immediately respond to a request for comment from CNN Business.

The worst outbreak of Covid in China in two years has prompted the authorities to intensify the country’s non-proliferation policy, leading to the closure of many major cities and tens of millions of people.

Strict lockdowns in places like Shanghai and Jilin risked delaying shipments at a time when global demand for vehicles is strong.

Severe Covid restrictions have dealt a blow to economic activity. Government statistics on Monday showed consumption fell in March, while unemployment rose, casting a shadow over the economic outlook.

Over the weekend, the Jilin government announced that it would allow companies to resume work and production, after declaring victory in eliminating the spread of the coronavirus in society outside quarantine areas.

Shanghai, the epicenter of the current Covid outbreak, has been under lockdown for more than three weeks.

In an effort to ease the disruption, the Shanghai government on Friday published a “white list” of 666 companies that will be allowed to resume production. Nearly 40% of automakers or companies engaged in the supply of the auto industry. But it is not clear exactly when these companies will be able to resume production.

CNN’s Beijing bureau contributed to this report.