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Volkswagen Planning Shutdown of Most European Plants

Volkswagen Planning Shutdown of Most European Plants

Volkswagen Group has cautioned the automaker will ultimately shutdown most of its European assembly plants in the near future. The shutdowns stem from the ongoing COVID-19 global pandemic, which is impacting Europe significantly as of this week.

Volkswagen CEO Herbert Diess confirmed the plans while speaking to reporters on Monday, according to CNBC. Diess explains that the automaker’s plants in Spain, Italy and Slovakia will be closing in the near future. All three countries have been among the hardest hit with the COVID-19 pandemic.

Diess isn’t confirming an exact duration for the shutdowns. Instead opting for language of “at least two weeks.” Given the fluidity of the COVD-19 situation, it comes as little surprise that executives are unable to provide specific guidance.

Speaking of loose guidance, Diess also issued a warning to investors, saying 2020 is going to be a “very difficult year.” Like with the plant closure timelines, Diess has not provided a specific forecast, citing only that the operational and financial impacts of COVID-19 are unknown at this time.

Volkswagen isn’t the only automaker looking to shutter assembly plants. Fiat Chrysler has already suspended production in Italy and other automakers are having conversations about ceasing production as COVID-19 spreads and the global economy continues to decline.





 

About Nick Saporito

AutoVerdict Senior Editor Nick Saporito began writing about cars at age 13. Nick ran a couple of automotive enthusiast sites for several years, before taking some time off to focus on his career and education. By day he's a marketing executive in the telecom world and by night he hangs out here at AV. You'll find him focusing on tech, design and the industry's future.
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