Bosch Suspends Production at China Auto Parts Factories
April 13, 2022—Auto parts maker Robert Bosch GmbH has suspended two of its factories in China, according to Bloomberg. This suspension, as well as the decision to operate two other locations on what they are calling a closed loop system, is being made as a result of Covid-19 lockdowns currently occurring in China.
“We are currently seeing temporary effects on logistics and supply chain sourcing,” Bosch said in a statement. “In this situation, we are doing everything we can to maintain the supply chains as much as possible and to serve the demands of our customers.”
The company has suspended operations at a thermo-technology plant in Shanghai and an auto components factory in Jilin province due to pandemic restrictions. Bosch's auto parts factories located in Shanghai and Taicang are operating through a closed loop system that means workers are either staying on-site or are taken to-and-from a secure accommodation. This strategy is meant to avoid exposure to the virus as much as possible.
Bosch, as well as many other companies operating out of China, must make tough decisions like these in order to abide by China's strict Covid-Zero policies. The majority of Shanghai's 25 million residents are under tight movement restrictions, and Jilin has been locked down entirely for about a month.