BMW, Daimler shut European automotive plants

BMW and Daimler have become the latest automotive manufacturers to shut plants in Europe due to the coronavirus pandemic.

BMW announced Wednesday it had decided to shut down its European automotive plants, as well as the Rosslyn plant in South Africa, by the end of the week, with restarts planned for April 20. A state of emergency was declared Sunday in South Africa over the coronavirus outbreak.

In Europe, BMW has three plants in the UK and eight car and motorcycle plants in Germany.

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BMW said it made the move to protect its employees and their families, as well as "to strengthen our society in the fight against the coronavirus and to prepare ourselves for the time 'after corona'."

The company's chairman of the board Oliver Zipse said at the annual accounts press conference Wednesday that BMW had already temporarily closed the first dealerships in Europe, with demand for cars expected to decrease significantly.

"Our production is geared towards sales development forecasts – and we are adjusting our production volumes flexibly in line with demand," he said.

Zipse added that the closure of the plants had begun Tuesday, with the interruption of production planned to run until April 19.

"Even in the current situation, we remain confident. There will be a time during the coronavirus. And there will be a time after the coronavirus," he added.

DAIMLER SUSPENDS MOST EUROPEAN PRODUCTION

Daimler released a statement Tuesday that it was suspending the majority of its production in Europe, as well as work in selected administrative departments, for an initial period of two weeks, "due to the worsening situation of the COVID-19 pandemic," and to follow the "recommendations of international, national and local authorities."

It said the suspension would start this week and apply to its car, van and commercial vehicle plants in Europe where it has five vehicle assembly plants in Germany, France and Hungary, including the large Sindelfingen plant in Germany.

"Connected to this is an assessment of global supply chains, which currently cannot be maintained to their full extent. An extension of this measure will depend on further developments. Wherever operations need to be continued, the company will take appropriate precautions to prevent the infection of its employees," it said.

Daimler said the closures would help it prepare for a period of temporarily lower demand and protect its financial strength.

"Given the ongoing spread of COVID-19, the economic effects on Daimler cannot be adequately determined or reliably quantified at this time...Full operations will be resumed when the situation improves," it added.