- Multiple sites to halt production
- The auto industry faced with unknown operational and financial challenges due to Coronavirus
VW has decided to suspend production at its Italy, Portugal, Slovakia and Spain plants this week to prevent the spread of the COVID-19 disease.
Additionally, the brand has stated that it’s German and other European plants are preparing to suspend production. VW Group has 124 production sites around the world, of which 72 are in Europe. Furthermore, as VW Group owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, the individual brands will communicate their plan of action soon. In fact Audi has already conveyed that it will stop production at its factories in Germany, Belgium, Hungary and Mexico by Monday.
Ford, on the other hand, is temporarily suspending vehicle and engine production at its manufacturing sites in in Germany and Romania from tomorrow onwards. Production off Ford’s assembly and engine facility in Spain had already been temporarily halted two days ago. However, Ford's UK engine plants in Bridgend and Dagenham have not been affected, and neither have their U.S. manufacturing facilities, so far.
As for Nissan, they’ve stopped output at Britain's Sunderland factory, which made nearly 350,000 of Britain's 1.3 million cars last year. The company says that the impact from the Coronavirus situation has not only seen a supply-chain disruption, but also a drop in consumer demand.
The Daimler Group has also decided to suspend the majority of its production in Europe for an initial period of two weeks starting this week. As a matter of fact, most car companies are assessing and preparing for a phase of temporary lower-demand, and will take further measures as required, when the situation improves.