Recent lockdowns initiated in China as a means of combating the latest surge in the never-ending pandemic appear to have impacted yet another publicly traded manufacturer. Chinese electric car maker Nio Inc (NYSE: NIO) this morning revealed that it has suspended production following the latest lockdowns in Shanghai.
The suspension of production is said to be a result of the most recent lockdowns causing disruption within the firms supply chain. With operations at suppliers disrupted, the company is unable to source the products necessary to proceed with its own manufacturing operations.
The announcement of the suspension of production was reportedly made on the company’s mobile app, as reported by both Bloomberg and Reuters. “Since March, due to reasons to do with the epidemic, the company’s supplier partners in several places including Jilin, Shanghai and Jiangsu suspended production one after the other and have yet to recover. Due to the impact of this Nio has had to halt car production,” the company said.
As of the time of writing no formal filing has been made by the company with the SEC to provide notification of the production halt.
Naturally, the halt is to result in delayed deliveries for some of its customer whom were expecting to take ownership of vehicles in the near term.
It is currently unclear just how long the halt will last, or what the overall financial implications will be.
The halt follows the company earlier this month announcing details on its March, and first quarter 2022 deliveries. The firm reportedly delivered 9,985 vehicles in March, and a total of 25,768 vehicles in the first quarter.
Nio Inc last traded at $20.00 on the NYSE.
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