BMW says China lockdowns are ‘risky’ for car manufacturing

BMW’s CEO is concerned about the impact China’s government-imposed lockdowns will have on car production, as the country continues to use strict measures to curb the spread of the COVID-19 pandemic.

“In China, lockdowns are currently increasing, not decreasing,” BMW CEO Oliver Zipse said.

“I am worried about how we get out of the lockdown situation in future quarters. There is no visibility that China has a solution.”

The Bavarian car brand has three factories in Shenyang, China thanks to its joint venture with Brilliance Auto, with a dedicated electric vehicle plant in Lydia recently opening in June.

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Chinese citizens have taken to the streets this week demanding an end to draconian lockdowns as part of the state’s zero-COVID strategy and, in a rarely seen move, the Xi Jinping government.

Similar dissidence ensued inside Foxconn’s Zhengzhou factory last week, where workers protested against COVID-19 restrictions, poor living and working conditions, and claims of overdue pay. Foxconn notably produces Apple iPhones, Fisker and its very own Foxtron EVs.

Despite continued lockdowns in China and ongoing semiconductor and parts supply chain issues, Zipse predicts 2023’s global sales will be around the same level as this year.

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Artist's impression of the BMW i5

“There will be different developments in different parts of the world, but overall, they will compensate each other,” Zipse said.

To the end of October this year, BMW has sold 7975 cars in Australia. This represents a 17.8 per cent dip compared to the same period in 2021, but is in line with global expectations.

Australia sources the BMW iX3 medium electric SUV from its Dadong, Shenyang factory in China. The forthcoming i5 medium sedan, next-generation Mini Electric Hatch, and Aceman crossover battery-electric models are all expected to be made in China.

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The quirky Mini sub brand won’t stray away from its spiritual home country, though. It will continue manufacturing internal combustion-engined vehicles in Oxford as it isn’t designed for EV production, but currently makes the soon-to-be replaced three-door Mini Electric.

A growing number of EVs are hailing from China, including the best-selling Tesla Model 3, Model Y, MG ZS EV, BYD Atto 3, Polestar 2, and upcoming MG 4, GWM Ora Funky Cat and more, alongside major battery suppliers like Contemporary Amperex Technology Co. Limited (CATL), BYD and CALB Technology.

EV sales are booming in China. More than three million battery-electric cars from domestic and Western brands have been registered year to the end of September, representing 22 per cent market share.