Apple, Toyota and Volkswagen “fazed” by the Covid wave in China
The impact of Covid has disrupted the operations of major suppliers of the three brands mentioned above.
China is suffering from a large Covid outbreak, production activities in Shenzhen were forced to suspend due to a sudden increase in infections, including Foxconn.
The temporary closure of Foxconn’s production facility was reported on Monday, March 14. The factory shutdown sent Apple shares down more than 1.5% in pre-opening trading, according to a report from CNBC.
Faced with this situation, Apple may increase production orders in Henan province to partially offset the damage caused by the closure of Foxconn Shenzhen’s factory. There is still no specific time on when the company will reopen the factory, before that, the Covid-related closure has lasted several weeks.
“Apple/Foxconn has the ability to move production to other regions in the short term as long as the downtime is not significantly higher. Extended downtime could cause production shortfalls in other departments.”according to company analysts.
Not only Apple, car manufacturing giants – Volkswagen and Toyota are also affected by the Covid outbreak. Two automakers have suspended operations in Changchun, China, Reuters reported.
Many Chinese provinces and cities have implemented stricter regulations to help contain the new outbreak. The efforts being made by companies to limit Covid are also in line with the goal of minimizing the spread of this infectious disease.
The government has ordered the suspension of public transport and asked people to work from home this week. However, the tightening of policies has disrupted business operations and supply chains.
Thai Hoang(According to EconoTimes)
at Blogtuan.info – Source: vietnamnet.vn – Read the original article here
