Volkswagen Hit by Supply-Chain Disruption in Europe
March 16 2020 - 5:31AM
Dow Jones News
By William Boston
BERLIN--Volkswagen AG, the world's biggest auto maker by sales,
said Monday that it is becoming difficult to maintain production in
its European plants as the spreading coronavirus disrupts suppliers
and national governments declare emergencies.
The situation in Europe is a stark contrast to the company's
manufacturing base in China, where 31 of its 33 factories are now
back on line after weeks of being closed as the coronavirus
pandemic gripped the country.
"While the situation in China is stabilizing, it is becoming
more difficult in Europe," said Joern Roggenbuck, a Volkswagen
spokesman. "It is becoming more complicated to maintain supply
chains."
Volkswagen's Lamborghini and Bugatti plants in Italy have halted
production. In the wake of the Spanish government's declaration of
a state of emergency Volkswagen factories in Martorell and Navarra
have shut down. The plants produce vehicles for SEAT and other
Volkswagen passenger car brands.
In the Czech Republic, which has also implemented strict
measures to stop the spread of the virus, Volkswagen unit Skoda is
maintaining production with difficulty, but has not yet shut down,
the spokesman said.
Volkswagen sales in Western Europe fell 3.5% to 263,800 vehicles
in February, and fell 7% to 56,900 vehicles in Central and Eastern
Europe. These figures still represent the period before the virus
hit Italy with full force and began to spread more rapidly in
Europe.
In China, Volkswagen sales at the height of the virus outbreak
in February, collapsed 74% to 60,900 vehicles from 234,400 vehicles
the year before.
Write to William Boston at william.boston@wsj.com
(END) Dow Jones Newswires
March 16, 2020 05:16 ET (09:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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