NIO shuts down two factories as COVID prevention measures increase in China: Report

NIO-ET5-Assembly-Lines
Credit: NIO

NIO has reportedly shut down two of its production facilities in China as new measures are implemented to help stop the spread of COVID-19.

According to local publication 36kr, NIO has stopped production at two of its facilities in Hefei, Anhui province, resulting in some delays to deliveries as well.

The problems for NIO reportedly began in mid-October, when the automaker had to implement epidemic prevention measures that were supposed to keep the JAC NIO F1 factory shuttered for between 3 and 5 days.

That timeline was extended, which resulted in a greater impact to production and deliveries than the automaker expected.

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NIO’s problems were compounded when their F2 factory was also recently shutdown, and their auto industrial park in the Hefei Economic and Technological Development Zone was put under closed control. (via StreetInsider)

The shutdowns resulted in many customers not receiving their new cars in October. There have been numerous reports from customers who were expecting to take delivery last month being advised by NIO that their car had not started production.

Some of those customers were reportedly told their deliveries would happen in November.

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UPDATE 10:10pm PT: NIO has confirmed the report is accurate and both factories have been shut down, impacting their deliveries. (via CLS)

NIO didn’t specifically address the shutdowns when announcing their October delivery figures this morning, except to say that “production and delivery were constrained by operation challenges in our plants as well as supply chain volatilities due to the COVID-19 situations in certain regions in China.”

During the 31-day month NIO reported 10,059 deliveries, a decrease of 7.5% compared to September.

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