Are you sitting down? China is cutting off the power supply to factories, especially in Northern China, which is causing some factories to lose electricity up to four or even five days a week.
This is impacting car audio factories, according to a half dozen 12 volt suppliers and distributors. There are reports of factory workers working by candlelight or using generators. And some are just stopping production on certain days of the week.
The recent crackdown is part of China’s efforts to follow new environmental standards which require less use of coal and electricity.
On Monday, Reuters reported that power outages in China were widening to the point that production was halted at factories supplying Apple and Tesla. It said electricity is being rationed not only at factories but at homes in various areas in China, especially in the North.
One car audio supplier said the new regulations will result in a two month delay in production and “It’s likely to get worse.” This full line supplier said electricity at its factory is shut down four days a week.
Another supplier said it was informed three days ago that electricity would be shut off at its factory two-to-three days a week.
Three suppliers said they received a letter in the past three days, reprinted below, outlining China’s policy.
Linkswell, whose factory is in the Southern part of China, which is less affected by the rationing, received the following message from one of its product managers in China, “Our industrial park only received notice for limited 50% power usage from Sept. 22-27th.. Not cut off like others.. Many places, they cut 5 days a week totally, and supply 2 days. Some even cut off 6 days a week.”
A 12 volt supplier said its factory has purchased a generator and so it is able to run at present. “It turns out one of our largest vendors has his own generator. We’re lucky they planned in advance,” said an executive.
Here is the letter several suppliers received from their factories: