GM develops continuity plan amid China’s COVID-19 outbreak
2022.04.11 16:46
FILE PHOTO: Employees work at a final assembly plant operated by General Motors Co and its local joint-venture partners in Liuzhou, Guangxi Zhuang Autonomous Region, China, February 28, 2019. REUTERS/Aly Song/File Photo
(Reuters) – General Motors Co (NYSE:GM) said on Monday it has developed a global continuity plan with its partners and suppliers to mitigate the uncertainty faced by the auto industry following China’s COVID-19 outbreak.
The Detroit-based automaker said it was on track to launch more than 20 new and refreshed models in the world’s biggest auto market despite the pandemic’s impact.
The COVID-19 curbs introduced in China to fight the worst outbreak in two years caused auto sales in the country to plunge in March, with automakers like Tesla (NASDAQ:TSLA) Inc feeling the pain of limits on production.
GM’s sales fell 21.4% to 613,000 vehicles in China in the first quarter compared with a year earlier. Sales of its top-selling Chevrolet brand declined nearly 20% in the same period.
The lockdown, one of the biggest tests for China’s “zero-COVID” strategy, has forced automakers and suppliers to either try to adapt with extreme measures to keep factories running or to shut down and risk delayed shipments at a time when demand for vehicles is strong.
China’s financial center of Shanghai started easing its lockdown measures in some areas on Monday despite reporting more than 25,000 new COVID-19 infections.
GM had said in March its manufacturing facilities were operating normally in Shanghai and were not affected by the city’s lockdown measures.
