By Ben Foldy

 

A Daimler AG assembly plant in Alabama making Mercedes-Benz SUVs will stop production next week because of snags in its international supply chain, a company spokeswoman said Friday.

The plant reopened April 27 as one of the first U.S. assembly factories to resume production after most of the auto industry shut down in March due to the coronavirus pandemic. Restarting the industry involves coordinating thousands of suppliers operating under different local regulations intended to stop the spread of the virus.

The problem has been particularly difficult in Mexico, the source of nearly 40% of U.S. auto-parts imports. Federal authorities this week set a June 1 target for reopening, with companies using the next two weeks to prepare health and safety protocols.

 

Write to Mike Colias at mike.colias@wsj.com

(END) Dow Jones Newswires

May 15, 2020 16:32 ET (20:32 GMT)

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