Volkswagen prepares to shut its European plants for two weeks

Volkswagen CEO Herbert Diess, announced on Tuesday to closed most of its European plants.

The Volkswagen European plants will be closed for production for two weeks’ time.

The decision was taken due to uncertain demand for cars and supplies parts amid coronavirus outbreak. The uncertain demand for cars has led to an uncertain year’s profit.

The CEO said the production in its plants of Spain, Setubal in Portugal and Bratislava in Slovakia will be suspended by the end of this week.

The production of Lamborghini supercars and Ducati motorcycles in Italy will also be halted.

The facilities produce cars under brands including Volkswagen, Audi, SEAT, Ducati, Porsche and Lamborghini.

The company, however, said China is the company’s pillar, will scale up the production of electric cars as the number of new cases have declined there.

The factory closure was announced at the company’s annual news conference.

The last shifts of the production would run this Friday.

Volkswagen CEO Herbert Diess also said showrooms in China are open and the sales are increasing as the coronavirus outbreaks have slowed down after the lockdown.

READ MORE: Apple closing its retail stores globally except Greater China till March 27

Other manufacturer’s steps taken amid coronavirus outbreak

• Renault has shut all twelve of its French plants
• PSA Group also announced on Monday the closure of plants in France this week. Until March 27 it will close its plants in Spain,Poland, U.K, Portugal, Germany, and Slovakia.
• Fiat Chrysler will suspend production in Italy, Serbia, and Poland, until March 27.
• Ferrari has suspended the plants Italian Formula 1 and road car.

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