BMW halts production in Europe as pandemic takes toll on auto sector
BMW says it is halting all production in Europe for four weeks, as the coronavirus crisis impacts demand in key auto markets, disrupts supply chains and threatens workers’ health on factory floors.
“Starting today, we will power down our European car factories and the Rosslyn plant in South Africa. The interruption in production is currently planned until April 19,” BMW chief executive Oliver Zipse said on Wednesday.
Read also: Coronavirus checks cause travel chaos at European borders
The Munich-based company’s announcement follows similar moves by its competitors in Germany and abroad.
On Tuesday, Daimler and the Volkswagen Group, including its Audi subsidiary, also announced temporary production halts.
The big three US car companies – General Motors, Fiat Chrysler and Ford – will start instituting a “rotating partial shutdown” of their facilities, the workers’ union said.
Audi and German truck manufacturer MAN are among the first German carmakers to apply for the government’s scheme to pay out salaries for employees who no longer have work – a measure last seen in Germany in response to the 2008/09 financial crisis. It has been revived to deal with the economic fallout of the pandemic.
Manfred Schoch, head of BMW’s works council, said the health of workers must be protected, as well as their jobs and incomes. Even with reduced hours, a BMW employee receives at least 93 per cent of his or her net salary, he added.
Schoch said the Munich-headquartered company would weather the crisis with such measures, as well as flexibility and home office for employees. (dpa)
