Volkswagen Group VWAGY told Benzinga on Thursday it would suspend production at its factory in Anting, Shanghai, between April 1-5 due to new COVID-19 related curbs aimed at halting a resurgence in cases.
What Happened: The German automaker earlier this week said its production at Anting was unaffected by the lockdowns and that it was monitoring the situation.
Volkswagen said it would carry out maintenance work in the factory during the production halt at the plant that it runs jointly with China’s SAIC Motor.
The legacy automaker also said factories in Changchun will remain closed until April 5. Volkswagen had suspended production at Changchun earlier this month following the spike in Covid-19 in China.
See Also: Volkswagen CEO Herbert Diess Says China's Nio And Xpeng Are 'Very Serious Competitors'
Why It Matters: China on Wednesday reported 8,484 new cases of COVID-19, according to Alphabet Inc’s GOOG GOOGL Google.
Volkswagen is not alone. Tesla Inc TSLA is reportedly extending the production halt at its Shanghai factory that began on Monday to till at least Friday.
China is a key market for both Volkswagen and Tesla where they compete with local legacy rivals as well as EV startups such as Nio Inc NIO, Xpeng Inc XPEV, and others.
Volkswagen delivered 70,625 ID EVs last year in China, below its target to sell between 80,000-100,000 units.
The state-induced lockdowns were expected to be lifted on Friday.
Price Action: VWAGY stock closed 4.6% lower at $24.7 a share on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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