Chengdu Lockdowns Force Factory Bubbles on Auto and Tech Giants

(Bloomberg) — 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.

The German automaker’s factory, jointly operated with local partner China FAW Group Co., entered a so-called “closed loop system” Thursday evening to maintain production, a company representative said Friday without elaborating. Foxconn, the largest assembler of Apple Inc. devices, is also adopting the method at its facility there which makes iPads, according to a person familiar with the decision.