GM maintains production in Shanghai with workers sleeping on the factory floor – sources

FILE PHOTO: FILE PHOTO: GM's logo on the company's headquarters
FILE PHOTO: FILE PHOTO: The new GM logo is seen on the facade of General Motors’ headquarters in Detroit, Michigan, on March 16, 2021. REUTERS/Rebecca Cook

March 29, 2022

SHANGHAI (Reuters) – General Motors’ joint venture in Shanghai has kept production going amid the city’s lockdown by asking workers to sleep on factory floors and getting passes for trucks to continue deliveries, two said people familiar with the matter.

Such measures are in line with a “closed-loop” management process that China’s financial center has asked to adopt in order to remain open during a two-stage lockdown to combat the COVID outbreak.

In the bubble-like arrangement, workers sleep, live and work in isolation from the rest of the world to prevent virus transmission. A similar system was used at the Beijing Winter Olympics to isolate event staff from the public.

The plants, which GM operates as part of a joint venture with Chinese state-owned automaker SAIC Motor Corp, which makes Buick, Chevrolet and Cadillac vehicles, are located in areas east of the Huangpu River in Shanghai that will be closed Monday through Friday became.

GM, which said on Monday that its Shanghai JV is producing normally, declined to comment on the arrangements at its plant. A spokesman said the company and its joint ventures have developed and implemented contingency plans with their suppliers to mitigate the uncertainty surrounding COVID-19.

GM’s ability to keep its Shanghai production lines running contrasts with that of Tesla, which Reuters reported suspended production for a period of four days. It has been unable to provide sufficient accommodation for its workers to achieve cohesive management, a source said.

Apple supplier Foxconn, TCL Corp and Apple supplier Shenzhen Deren Electronic Co Ltd this month managed to keep production running in southern China with closed-loop management after manufacturing centers like Shenzhen and Dongguan were hit by similar lockdown measures .

(Reporting by Zhang Yan and Norihiko Shirouzu, writing by Brenda Goh) GM maintains production in Shanghai with workers sleeping on the factory floor – sources


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