The Daimler Group announced it has decided to suspend the majority of its production in Europe, as well as work in selected administrative departments, for an initial period of two weeks. By taking this action, the company said it is following the recommendations of international, national and local authorities. The suspension applies to Daimler's car, van and commercial vehicle plants in Europe and will start this week. 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.
“With these closures, Daimler is helping to protect its workforce, to interrupt chains of infection and to contain the spread of the pandemic,” said Daimler in a statement. “At the same time, this will help the company to prepare for a period of temporarily lower demand and to protect its financial strength.”
Daimler said its management is monitoring the situation constantly and will take further measures as required. Full operations will be resumed when the situation improves.
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Truck makers Volvo Trucks North America and Mack Trucks and engine supplier Cummins Inc. are suspending production at U.S. assembly plants, idling workers because of the coronavirus pandemic and supply chain stress.
Cummins (NYSE: CMI) said late Friday it was suspending production at its Midrange Engine Plant in Walesboro, Indiana that makes engines for Fiat Chrysler Automotive’s Ram Trucks plant. The Ram plant in Warren, Michigan closed Thursday until at least March 30 because a worker was diagnosed with coronavirus.