Volkswagen, Foxconn Begin Factory Bubbles To Withstand Chengdu Lockdown: Bloomberg

Volkswagen AG VWAGY has formed a bubble by keeping its workers on-site in their factories in Chengdu, Bloomberg reported.
The move comes after Chengdu locked down about 21.2 million residents to contain the rising COVID-19 cases.
Related: China Locks Down 21M Chengdu Residents As COVID-19 Cases Spur In Megacity
Hence, Volkswagen, which operates a factory along with its local partner China FAW Group Co, has gone into a closed loop system to ensure uninterrupted production.
The report noted Foxconn Technology Group, an Apple Inc. AAPL supplier, has also undertaken similar steps at its facility.
Closed loop, or factory bubble is used by China to ensure the running of economic activities while attempting to control the spread of the pandemic.
Chengdu is the largest city to be locked down after Shanghai was shut down for two months earlier this year.
"Everyone was trying to understand what they could do from an operational point of view of their business, as well from the individual point of view," said Massimo Bagnasco, chair of the southwest China chapter, European Union Chamber of Commerce in China.
Price Action: VWAGY shares closed lower by 1.51% at $18.23 on Thursday.
Photo Via Company