Tesla, VW, SAIC Look To Recommence Shanghai Operations

Tesla VW and SAIC are among several companies that are looking to get production back up and running at their Shanghai facilities after almost three weeks of COVID-19 related shutdowns. The news comes following Beijing having drawn up a “whitelist” of companies prioritised to re-open or keep operations going in Shanghai. The list included a number of companies ranging from carmakers to semiconductor manufacturers and medical firms.

As per Reuters, Tesla had already recalled workers to its Shanghai factory where they would be required to live on-site. The company had planned to commence production today though it has now been deferred to tomorrow citing logistical issues from a supplier. SAIC Motor meanwhile reported that it was commencing stress testing from Monday with an eye on recommencing production while VW said it was evaluating the feasibility of resuming production at its SAIC joint venture.

However, with COVID-related closures in other cities in the country, it remains to be seen how manufacturers work around supply chain disruptions.

Shanghai meanwhile aims to stop the spread of COVID-19 outside of quarantined areas by Wednesday with reports saying that the city had stepped up testing measures and transfer positive cases and their close contacts to isolation.

Companies are being required to ensure ‘closed loops’ for workers being called into work while also maintaining medical supplies. Under ‘closed loops’ employers have been asked to minimise employee exposure to others while transiting to work or arranging for employees to live on their factory premises.