Volvo Cars to close China plant due coronavirus restrictions
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SWEDEN’S Volvo Cars will temporarily close its plant in the Chinese city of Chengdu due to local coronavirus restrictions, a company spokesperson said on Thursday (Sep 1).
“Due to the lockdown in Chengdu, Volvo Cars is temporarily suspending production at a manufacturing plant there. We are assessing the impact on the business and we’ll continue to monitor the situation,” the spokesperson said.
Volvo’s plant in Daqing had also been affected by a lockdown in recent days, he added.
Earlier on Thursday, Chengdu announced a lockdown of its 21.2 million residents, the most populous city to be locked down since Shanghai earlier this year.
Stockholm-listed Volvo, majority owned by Chinese automotive company Geely Holding, has produced cars in China since 2013 and last year sold almost 172,000 vehicles in the country, some 25 per cent of its overall sales.
The company’s shares traded 3.3 per cent lower at 1058 GMT, lagging the Stockholm benchmark index which was down 1.7 per cent. REUTERS
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