(Bloomberg) — More global automakers have been caught in China’s latest coronavirus outbreak in Tianjin, adding further stress to already strained supply chains.
A production plant operated by Volkswagen AG’s joint-venture with FAW Group has been shuttered since Monday, along with with a gearbox supplier controlled by the German automaker, according to an emailed statement Friday. They join a Toyota Motor Corp. factory that has been closed for five days.
The closure of the VW plant may hit production of Tayron, Tayron X and Tayron plug-in hybrid models, and the Audi Q3, the company said.
The company, which has tested all employees twice this week, expects to resume output “very soon” and catch-up with lost production. The “top priority remains the health and well-being of our employees,” it added. Volkswagen has around 8,000 employees in Tianjin.
The Toyota plant produces around 500,000 vehicles a year, including popular models such as the Corolla sedan and Rav4 SUV.
Tianjin, a port city of 14 million and a major production hub for foreign businesses, is just 30 minutes from Beijing by train and adjacent to Hebei province, which is hosting most of the snow sports during next month’s Winter Olympics.
City authorities have mandated mass testing to attempt to stamp out an outbreak of the virus, as China adheres to a strict Covid-Zero policy.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
