(Source = Reuters Union)

Tesla’s Shanghai factory, production disruption three weeks after reopening… “Vehicle production has been cut by more than half”

(Source = Reuters Union)

Tesla’s Shanghai plant in China is experiencing production disruptions due to parts supply problems.

According to Bloomberg News on the 10th, Tesla’s Shanghai plant is operating, but it is being affected by supply chain problems. Chinese authorities have closed Shanghai for six weeks to prevent the spread of COVID-19. The situation has improved recently as Shanghai city authorities have allowed limited plant operation, but it seems it will take some time to normalize. Earlier, Reuters reported that most of Tesla’s Shanghai factories had been shut down, and it was unclear when the supply shortage would be resolved.

In response, Tesla said in a statement on the 10th that it had not been notified of the shutdown of its Shanghai plant and that it is still producing vehicles. However, it did not deny the problem of supply shortage. A Tesla official said, “The Shanghai plant has resumed production sequentially after April 19, but it is being affected by logistical disruptions.”

Tesla’s Shanghai factory ‘Gigafactory 3’ stopped operating for 22 days from the end of March, and started operating some factories on the 19th of last month by introducing a ‘closed-loop’ method that completely separates the factory from the outside. Employees are not commuting to work, providing room and board at the factory, and antigen and nucleic acid tests are conducted every morning and afternoon to prevent infection in the factory. Before the shutdown, Tesla’s Shanghai plant had a production system of 3 shifts, 24 hours a day, 7 days a week, but now it has been replaced by a 12-hour shift, 6 days a week. Due to a lack of parts, work must also be stopped after 8 hours of work.

A situation in which production was disrupted due to the Corona 19 infection of Aptiv, a wire harness supplier, which is a bundle of wires, prevented the supply of the parts to Tesla’s Shanghai plant and General Motors (GM), etc.

Meanwhile, Tesla is trying to increase the production of its Shanghai factory to 2,600 units per day from the 16th to restore the production to the level before the lockdown in Shanghai, but it seems difficult to achieve the target. This is because the logistics difficulties are expected to prolong due to the continued lockdown, and it is difficult to secure production manpower.

Before the lockdown, Tesla’s Shanghai plant produced about 2,100 a day. However, from the 19th to the 30th of last month, when the plant restarted after three weeks of shutdown, it only produced about 830 electric vehicles, which was reduced by more than half.

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