Global OEMs suspend production, warn of financial impact of Covid-19
STUTTGART, Germany – Daimler Group has announced it is taking the extraordinary step of suspending 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, beginning this week, and is in response to the global Covid-19 pandemic.
“With these closures, Daimler is helping to protect its workforce, to interrupt chains of infection and to contain the spread of the pandemic,” the company said in a release. “At the same time, this will help the company to prepare for a period of temporarily lower demand and to protect its financial strength.”
The company also said it is currently unable to predict the economic effects on its business. Earlier this week, Volvo Group also warned “it is not currently possible to predict the full potential impact on the Volvo Group,” as it warned of “a considerable risk of a material financial impact” on the company.
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