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BMW To Shut Down European Factories Over Coronavirus

The BMW manufacturing unit in Munich, Germany. A BMW worker in Munich has examined constructive for the coronavirus. AFP

 

German carmaker BMW stated Wednesday it will shut European and South African factories accounting for half its output for a month, matching different automobile giants laid low with coronavirus containment measures.

It additionally warned that earnings this yr can be considerably decrease on account of the disaster.

“From today, we will shut down our European car factories and the Rosslyn factory in South Africa,” chief government Oliver Zipse stated, including that the interruption is predicted for now to final “until April 19”.

BMW’s factories round Europe — in Bavaria, elsewhere in Germany and additional afield — mixed with the South Africa plant accounted for half the two.56 million vehicles the group built-in 2019.

Round Europe, different producers together with Mercedes-Benz dad or mum Daimler, Volkswagen, Ford, Fiat and Peugeot have additionally moved to close manufacturing unit doorways via the coronavirus disaster.

“As for many goods, demand for cars will sink sharply” due to the virus and related containment measures, BMW CEO Zipse stated.

Employees on the Munich-based group profit from “highly flexible and effective working-time tools” that may assist cushion the affect, he added.

The German authorities has already simplified guidelines governing compensation for employees whose hours are slashed in the course of the disaster.

BMW finance director Nicolas Peter stated the group now expects pre-tax earnings this yr to be  “significantly lower” than the 7.1 billion euros ($7.eight billion) reported in 2019.

“Measures related to the coronavirus will have a significant impact on the course of our business,” Peter stated.

AFP

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