The European auto industry closes plants because of the violation of supply chain components
Largest European manufacturers of cars and spare parts began to close plants and reduce production in Italy and other countries of the block in response to Europe's largest outbreak of coronavirus.
German carmaker Volkswagen has reached an agreement with unions at its plant in the Spanish region of Navarra, the part of the staff will be temporarily sent home in case of infringement of the supply chain. By words a press-the Secretary of the company, the plant, which employs about 4,800 people currently working fine, and the details of how many workers can be temporarily laid off will be determined if necessary.
Fiat Chrysler announced that it is temporarily suspending work on some of its Italian plants and reduce the production of cars. Italian-American automaker has reinforced security measures at its facilities, including intensive cleaning of all workplaces and recreational areas to support government guidelines to curb the spread of infectious diseases.
Italy is the most affected by the pandemic country in the world after China, and the unprecedented localization of the country has created new pressures on the automotive sector of the region. Last week, the industry Association has warned that car sales in Italy, the third largest economy in Europe, could be reduced by more than 15%.
Other companies, including the largest British car manufacturer Jaguar Land Rover and PSA Peugeot owner, also faced with Contracting personnel, stressing the risks to the business beyond the supply chain and the borders of Italy.
French carmaker strengthened security rules Wednesday at its plant in Mulhouse, where in the East of France employs 5 000 people after one of the employees had tested positive for coronavirus, said the press Secretary of the Peugeot.
Spanish unit of German carmaker Volkswagen, Seat, is considering temporarily send employees home from its factory in Barcelona because of problems with supply.
work stoppages are the latest blow to European automakers, which are struggling with weak global demand and the high cost of reaching hard targets in greenhouse gas emissions in the region.
the Virus has hit the business in China, the largest car market in the world where car sales fell last month by about 80%. Only Tesla able to increase sales by offering customers remote maintenance and contactless test-drives.