Currently reading: How China's zero-Covid policy is affecting car makers
With Shanghai in the grip of a Covid spike, car manufacturers are braced for more production issues

Just as the car factories affected by a Covid shutdown in Shanghai are starting to reopen, so the knock-on effect of the broader restrictions in China is beginning to hamper automotive production elsewhere.

Renault announced on Tuesday that it had temporarily stopped production of the Mégane E-Tech at its plant in Douai, northern France, citing the “semiconductor crisis accentuated by the lockdown measures in several regions of China”, according to Reuters.

Renault’s actions are a reminder that the automotive supply chain, particularly when it comes to EVs, is still reliant on Chinese parts makers. It means the country’s very different method of dealing with the Covid threat – lockdowns to halt the spread rather than relying on mass vaccination – has a delayed effect on production elsewhere as suppliers are forced to pause production.

Companies are concerned that the plant closures that affected the likes of Tesla and the Volkswagen Group in Shanghai will spread because of a lack of parts.

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