Volkswagen AG and Foxconn Technology Group are keeping their workers on-site in their factories in Chengdu after the Chinese metropolis locked down its 21 million residents to contain a COVID-19 outbreak, reports Bloomberg.
The German automaker’s factory, jointly operated with its local partner China FAW Group, entered a so-called “closed loop system” Thursday evening to maintain production, a company representative said on the phone on Friday, without elaborating. Foxconn, the largest assembler of Apple devices, is also adopting the method at its facility that makes iPads there, according to a person familiar with the decision.
First used during the Beijing Winter Olympics as a way of keeping athletes and support staff separate from the wider population, closed loops, or factory bubbles, typically require workers to travel from on-site accommodation to the factory and back, strictly avoiding contacts with outsiders, and be tested regularly for COVID. Companies such as Tesla Inc. have even kept their workers sleeping on the floor during the Shanghai lockdown earlier this year.