Tuesday, December 5, 2023
HomeBusiness InnovationCOVID strikes back! Aptiv stops production in Shanghai

COVID strikes back! Aptiv stops production in Shanghai

Key Highlights:

  • Aptiv sends workers home due to rising COVID cases.
  • Aptiv ranks amongst the leading auto-wire producers in China and supplies to almost all carmakers.
  • Tesla has stopped production for four days.

Aptiv has sent the employees home from the Shanghai production facility. Aptiv, the auto parts maker is a supplier for the big automotive companies like Tesla and General Motors joint venture. The production was stopped due to COVID issues.

For now, Aptiv has declined to comment on the production halt and said it was following the government orders and this will not affect the customers’ production.

Aptiv has several operating production sites in the Shanghai Jiading district in the western part of the city. Although the city has not been affected by the two-stage COVID lockdown, which has been effective in the east from Monday.

Wire Harnesses Shortage

Aptiv customers Tesla, General Motors, and Shanghai joint venture with SAIC Motor Corp did not release any official statements yet.

It has been reported that the site which makes wire harnesses was abruptly shut down and the workers were told to go home. Wire harnesses are among the important components that bundle up to 5 km of cables in a typical car. Each model has unique wire harnesses built into them.

Since the Russian invasion of Ukraine, big automakers like Volkswagen and BMW are seeking out an alternative for wire harnesses and other parts. Ukraine is among the key producers of harnesses and its halted assembly lines had disturbed the complex supply chains.

Who is Aptiv?

Aptiv ranks amongst the leading auto-wire producers in China. It supplies almost all carmakers in China. The customers include Tesla, General Motors, Volkswagen joint venture SAIC, Ford, and Toyota.

COVID Lockdown imposed

Shanghai has initiated the first phase of lockdown as the daily new cases hit a record high of 4,400+. Other parts of Shanghai will go under lockdown on Friday until the early hours of 5th April. Despite the setbacks, General Motors has been successful in maintaining the production rate. The workers are said to be sleeping at the factory for now. As for Tesla, production has been halted for four days.

Also Read: COVID Alert! 30 million people under lockdown in China

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