Business Maverick: China’s Covid policies once again upending car manufacturing

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The country’s stringent Covid Zero regime is once again upending the nation’s car manufacturing sector with at least three major car manufacturers shuttering production because of virus restrictions.

Japan’s Honda Motor Co suspended its operations in Wuhan, the virus epicentre in early 2020, because of limitations around movement introduced in the area. Whether the plant will remain closed through to Wednesday hasn’t been decided, a spokesperson said on Tuesday. Honda also extended the suspension of operations at another plant producing engines for lawn mowers in Chongqing.

Toyota, the world’s No 1 car manufacturer, is adjusting production at parts of its Chinese factories due to multiple factors, spokeswoman Shino Yamada said, declining to elaborate. First used during the Beijing Winter Olympics as a way of keeping athletes and support staff separate from the wider population, closed-loop systems, or factory bubbles, are a Chinese initiative used to keep businesses running amid punishing efforts to stamp out Covid’s spread. They typically require workers to travel from on-site accommodation to a factory and back, strictly avoiding contacts with outsiders.

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