Volkswagen stops production at most plants in Germany and Europe due to the corona virus crisis. The company will announce in the morning that this Friday is the last shift, it said in a letter from the works council to the employees.
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The company released final figures for 2019 on Tuesday. Accordingly, the core brand VW posted a higher profit despite a mixed business. The subsidiaries Audi and Porsche were also able to improve.
With a view to the further course of 2020, the world’s largest car company expects the virus crisis to have significant consequences. CEO Herbert Diess warned: “The corona pandemic presents us with unprecedented operational and financial challenges.”
The corporation’s record highs in 2019 would be completely pushed into the background by the corona virus crisis, wrote NordLB analyst Frank Schwope. “The drop in delivery figures in China in February of almost three quarters compared to the previous year is stark and unprecedented.” What was shown in China in February could expand to many other important country markets in March and April.
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“Forecast almost impossible”
“2020 is a very difficult year,” said Diess. He was also concerned about the economic situation. “By pooling our strengths, close cooperation and good morals in the group, we will be able to overcome the Corona crisis.”
CFO Frank Witter said that with regard to the consequences of the virus spread, it is “still uncertain how serious and how long this will affect the Volkswagen Group. A reliable forecast is currently almost impossible.”
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VW had to temporarily suspend production in numerous Chinese factories, but the situation in the People’s Republic is now expected to stabilize somewhat. In Germany, there are now the first confirmed cases of infection among the workforce.
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