Car Factories Face Closure as Supply Chains Buckle Under Corona

Updated 20.03.2020

Volvo announces shutdown in Europe & USA, has already re-opened China plants;

The corona pandemic is now severely affecting Volvo Cars in many ways, in the form of a weakening market, a risk for production disruption as well as concerns for the employees.

The Belgium plant will remain closed until 5 April. The Swedish and US plants will be closed between 26 March and 14 April. People working in our offices will generally work from home as of 26 March and working hours will be reduced.

These actions will secure jobs and ensure that Volvo Cars can come back to normal production as soon as it is possible and safe.

Earlier this month, Volvo Cars reopened its four manufacturing plants in China after an extended closure period. Today’s showroom traffic is indicating a return to normal in China’s car market, which is clearly demonstrating the advantages of being a globally balanced company.

“Our primary concerns are the health of our employees and the future of our business,” said Håkan Samuelsson, Chief Executive of Volvo Cars. “With the help of valuable supporting programs put in place by governments and authorities, we have been able to act quickly.”

The Volvo Cars manufacturing plants impacted by the measures announced today are located in Torslanda, Skövde and Olofström (all Sweden), Ghent (Belgium) and South Carolina (United States). The affected office employees work at the company’s headquarters in Gothenburg, Sweden, as well as at the Ghent plant and in its markets.

Updated 18.03.2020

Rolls Royce will suspend production for two weeks from 23rd March.

Nissan has suspended production at its Sunderland plant.

VW Group announced that it will begin gradual, rolling shutdowns of its entire EU operations from tomorrow onwards. Extra measures will be put in place to deep clean workplaces, all meetings will be via Skype or video conference, vulnerable staff with medical conditions will receive extra support.

The latest from Peugeot-Citroen Group; Due to the acceleration observed in recent days of serious COVID-19 cases close to certain production sites, supply disruptions from major suppliers, as well as the sudden decline in the automobile markets, the Chairman of the Executive Board with the members of the crisis unit, decided the principle of the closure of the vehicle production sites, according to the following schedule and until March 27.

  • March 16: Mulhouse (France), Madrid (Spain)
  • March 17: Poissy, Rennes, Sochaux (France), Zaragoza (Spain), Eisenach, Rüsselsheim (Germany), Ellesmere Port (United Kingdom), Gliwice (Poland)
  • March 18: Hordain (France), Vigo (Spain), Mangualde (Portugal)
  • March 19: Luton (United Kingdom), Trnava (Slovakia)

The closure of the mechanical sites will be adjusted accordingly.

The site management teams will implement the site closure procedures locally, which will be done in coordination with the social partners.

Groupe PSA remind that until then, compliance with the barrier measures, going beyond the recommendations of the health authorities on the sites, are the best protection to prevent the spread of the virus.

Ferrari has also announced that it will halt production, here’s the press info;

Ferrari has decided to suspend production in Maranello and Modena with immediate effect and until 27 March.

The decision has been taken by the Company for its employees’ well-being and follows a number of rigorous preventive measures already implemented by the Company to guarantee the highest health standards in light of the Italian Government’s decree on COVID-19 issued on March 11, as well as previous decrees. The Company, that had ensured continued production so far whilst placing employees’ wellbeing as its main priority, is now experiencing the first serious supply chain issues, which no longer allow for continued production.

All non manufacturing related activity will continue on a regular  basis, leveraging the opportunities provided by smart working.

Scuderia Ferrari, in line with manufacturing, has also suspended its operational activities.

“At a time like this,” commented Ferrari’s CEO, Louis Camilleri, “my gratitude goes first and foremost to Ferrari’s women and men who, with their tremendous commitment over the past few days, have demonstrated the passion and dedication that defines our marque. Together with our suppliers, they have ensured the Company’s production. And it is out of our respect for them, for their peace of mind and those of their families that we have decided on this course of action. Camilleri added “Our clients and fans are also top of mind for  us at this time, as we prepare for a strong restart.”

About alastair walker 6876 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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