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Two Nio Plants Temporarily Halt Production By Investing.com

© Reuters Two Nio (NIO) Plants Temporarily Halt Production
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By Michael Elkins

A local media outlet, 36kr reported on Tuesday that Chinese electric vehicle maker, Nio Inc. (NYSE:) has recently halted production at two plants in Hefei, Anhui province, amid local Covid prevention and control requirements. Deliveries of its models have also been delayed.

A person familiar with the matter told 36kr that since mid-October, Weilai’s production has begun to face challenges. To cooperate with epidemic prevention, the JAC NIO F1 factory was originally planned to be closed for 3 to 5 days, but later the closure time was extended, and the overall production and delivery rhythms were affected.

Another person close to NIO said that the company’s auto industrial park, Neo Park, in the Hefei Economic and Technological Development Zone is also under closed control recently, and the vehicle production line of the F2 factory has also been suspended.

The lockdown of factories and halted production have greatly affected Nio’s delivery efforts. Many consumers that have ordered vehicles were scheduled to receive them in October, but by late in the month, the vehicles haven’t even started production. Some were told that delivery would be delayed until November.

The report mentioned feedback from some owners over the past two days, showing that production at the NIO plant has not come to a complete stop and that some new cars have started the production process.

The company reported earlier today that it delivered 10,059 vehicles in October, down 7.5 percent from 10,878 in September and up 174.31 percent from 3,667 in the same month last year.

NIO’s press release announcing its delivery figures said that production and delivery of its vehicles were limited by operational challenges at its plants and supply chain fluctuations due to the Covid-19 incident in certain parts of China.

Shares of NIO are up 2.12% in mid-day trading on Tuesday.

Story Credit: investing.com

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