The world’s largest carmaker says its sales have been hit by the spread of the pandemic
17 March 2020 - 16:32A Volkswagen factory in Zwickau, Germany. Picture: SEAN GALLUP/GETTY IMAGES
“Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands,” CEO Herbert Diess said on Tuesday.Volkswagen’s powerful works council concluded it was not possible for workers to maintain a safe distance from one another to prevent contagion and recommended a suspension of production at its factories from Friday.
Volkswagen’s vast factory in Puebla, Mexico, and plants in Brazil and the US were not affected, but that would depend on how the coronavirus spreads, VW said.“ 2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts,” Diess said.Volkswagen Group sold 10.
Sales in January and February were down about 15% and earnings before interest and taxes in the first three months of the year were expected to at least halve compared with the same period a year earlier, Witter said.
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