VW and Daimler halt car production

Volkswagen and other German carmakers are temporarily suspending production in response to the accelerated rate of coronavirus infections, the resulting interruption in supply chains, and the rapid decline in demand on the automotive markets.

The VW Passenger Cars brand is gradually suspending production at its European plants, which will also affect components plants of the larger VW group, Kallanish learns from a corporate announcement.

The duration of the measure will initially be for two weeks, concerning car production facilities in Wolfsburg, Emden, Dresden, Osnabrück, Zwickau (all Germany), Bratislava (Slovakia), Pamplona (Spain) and Palmela (Portugal).  Also affected are German components plants at Brunswick, Chemnitz, Hanover, Kassel, and Salzgitter.

“The spread of coronavirus in Europe is increasingly having an adverse impact on the demand situation. At the same time, it is becoming increasingly difficult to supply our plants with outsourced parts,“ says Ralf Brandstätter, coo of the Volkswagen Passenger Cars brand. For this reason, and in the interest of the health of its workforce, VW will run production down in a coordinated way from the end of the late shift on Thursday.

In Italy, Automobili Lamborghini has intensified measures against the coronavirus, in support of new government directives, closing its premises from 13 March until 25 March, according to a VW statement.

The Daimler group has also decided to suspend the majority of its production in Europe, for an initial period of two weeks. The suspension applies to Daimler’s car, van and commercial vehicle plants in Europe, and will start this week. Connected to this is an assessment of global supply chains, which currently cannot be maintained to their full extent, the carmaker says.