Nearly three years into the Covid-19 pandemic, China’s stringent zero-covid restrictions are hurting its carmaking industry again, as infections jump at a record pace.
Production at several automakers has been disrupted, either because staff can’t get to their workplace or due to shortages of components.
Honda Motor, for example, suspended operations at three automobile plants in Wuhan on Monday – because employees were unable to go to work due to citywide shutdowns.
A factory in Chongqing, which makes general-purpose engines, will be largely shut down until December 2, Honda said, while production at another auto plant in Guangzhou is being adjusted.
Honda said:“While closely monitoring the situation, we will strive to minimise the impact.”
Production at Volkswagen’s plant in Chengdu – which it operates with local partner FAW Group – has been halted for the past week due to rising coronavirus cases.
Two of the five production lines at another plant, in Changchun, is also on hold – due to a lack of available parts.
A VW spokesperson has explained that other plants are stable but that the situation is volatile, as lockdowns and restrictions continue to inhibit growth.
BMW also fears further Covid-related lockdowns in China next year which would disrupt demand for its fully-electric models and expectations of stable global sales.“In China, lockdowns are currently increasing, not decreasing,”
Chief executive officer Oliver Zipse said to reporters at an event late last week:“I am worried about how we get out of the lockdown situation in future quarters. There is no visibility that China has a solution.”
Other automakers have been scrambling to adjust their production, although others say they’ve not been hit yet, as Bloomberg reports: "Motorcycle maker Yamaha Motor Co is partially suspending production at its motorcycle plant in Chongqing, where 8,721 new Covid cases were reported on 28 November.
"Other Japanese carmakers including Nissan Motor Co, Mazda Motor Corp and Mitsubishi Motors Corp told Bloomberg their China operations haven’t been impacted yet.
"Toyota Motor Corp, the world’s No 1 carmaker, is adjusting production at parts of its Chinese factories due to multiple factors, spokeswoman Shino Yamada said, declining to elaborate.
Investors will be watching China closely, where police have been stamping out zero-Covid protests after a wave of civil disobedience last weekend.
On the economic front, we find out how many UK mortgages were approved last month. Economists expect a fall, after the mini-budget rocked the markets. Germany will release its preliminary inflation report for November, while Canada will report Q3 growth figures.
EasyJet, Topps Tiles and Greenore Group are reporting financial results.
And Octopus’s takeover of collapsed energy supplier Bulb could be rubber-stamped, at a court hearing in the City of London’s Rolls Building.
The agenda
• 8am GMT: Switzerland’s Q3 GDP report
• 9.30am GMT: UK mortgage approvals and credit card lending data for October
• 10am GMT: Eurozone consumer, economic and industrial confidence report
• 12.35pm GMT: Bank of England MPC member Catherine Mann takes part in a panel discussion on “policy solutions, fiscal and monetary”
• 1pm GMT: German inflation report for November
• 1.30pm GMT: Canadian Q3 GDP
• 2pm GMT: US house price index for September
• 3pm GMT: Andrew Bailey, governor of the Bank of England, faces the House of Lords economic affairs committee
We’ll be tracking all the main events throughout the day ... |
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