As the biggest city in China goes on lockdown, General Motors is taking extreme measures tokeep new car production going, including asking workers to sleep on factoryfloors.
Leaders in Shanghai, China's financial epicenter that's locatedon the southeastern coast,starteda two-stage lockdown Monday totry to control a massive COVID-19outbreak.
Thatlockdown is forcing automakers and suppliers to scramble and make tough decisions.
China has a "zero-COVID" strategy that relies on mass testing, contact tracing and other policies to control the spread of the virus. It also demands that companiesusestrict measures to keep factories going—or elseshut down. The latter would produce production disruptions anddelayed shipments at a time when consumer demand for new cars is strong. Last year, GM delivered 2.9 million vehicles in China.
Asource familiar with GM's joint venturewith Chinese state-owned automaker SAIC Motor Corp.told the Detroit Free Press Tuesday that it has kept production going in Shanghaiby keeping employees living in the plant. The person asked to not be named because there was noauthorization given to share that with the media.
But the person saidproduction in itsSGM plant continues with the health measures in place, including the "closed-loop" requirement.
"According to the Shanghai government’s pandemic control measures, companies are required to operate either in closed loop if necessary or have the employees work from home," the person said. "Closed-loop operation means that employees must stay in the plant."
The story was first reported by Reuters. Itsaid the workers are being asked to sleep on the factory floorand that GM's joint venture got passes for trucks to continue deliveries. Reuters cited two unnamed sources.
Closed loop is a form of quarantine. Reutersdescribed it as a "bubble-like arrangement" whereworkers sleep, live and work in isolation from the outside community to prevent COVID-19 transmission.
Ford Motor Co. does not have any manufacturing plants in the Shanghai area, said Ian Thibodeau, a Ford spokesperson.
"We do have offices in the Shanghai area and employees there are working from home," Thibodeau told the Free Press Tuesday. "Ford’s manufacturing plants are located elsewhere in China, and they remain in operation.”
GM'sfacilities in Shanghaiproduce Buick, Chevrolet and Cadillac vehicles.
GM spokesman Dan Flores said GM, along with itsjoint ventures’ supply chain and engineering teams, have "developed and are continuing to execute contingency plans on a global basis with our suppliers to mitigate the uncertainty related to COVID-19."
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Contact Jamie L. LaReau at 313-222-2149 or jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.
