BEIJING: Electric vehicle maker Tesla has denied halting production at its Shanghai plant, despite reports it had ceased most activities due to problems in securing parts.
Reuters reported that according to an internal memo seen by the news agency, the plant plans to manufacture less than 200 vehicles Tuesday — far less than the roughly 1,200 units it has been building each day since shortly after it reopened on April 19 following a 22-day closure.
Two sources familiar with the matter had earlier said supply issues had forced the factory to halt production Monday.
The company has refuted the report, saying that it hasn’t halted output at the site, although a spokesperson for the US carmaker acknowledged that it is experiencing some disruption to logistics amid the city’s long-running Covid-19 lockdown.
Shanghai is in its sixth week of an intensifying COVID-19 lockdown that has tested the ability of manufacturers to operate amid hard restrictions on the movement of people and materials.
Tesla had planned as late as last week to increase output to pre-lockdown levels by next week.
It was not immediately clear when the current supply issues could be resolved, said the people, who asked not to be identified because the production plans are private.
China's Geely buys stake in Renault Korea
China’s Geely Automobile will buy just over a third of Renault’s Korea unit for roughly $200 million, potentially helping it boost US exports, and freeing up funds for the French automaker to invest in its electric business.
Renault, which can assemble 300,000 vehicles a year in its factory in Busan, South Korea, is in the middle of a turnaround aimed at increasing margins and separating its electric vehicle business to catch up with rivals such as Tesla.
The French firm’s move to sell the stake to Geely — which owns Volvo Cars and a 9.7 percent stake in Daimler AG — follows an announcement by the two companies in January to develop hybrid vehicles for South Korea and abroad, produced at the Busan plant.
For Geely, which has typically grown its business through global partnerships, the deal goes beyond selling cars in South Korea and is a way for the Chinese automaker to export cars made in South Korea to America, a person close to the company said.
“It is an open door into the US,” said the person who declined to be named because the plans are confidential.
(With input from Reuters)
