VW Extends Production Stop By Four Days

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VW Extends Production Stop By Four Days
VW Extends Production Stop By Four Days

Video: VW Extends Production Stop By Four Days

Video: VW Extends Production Stop By Four Days
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The car manufacturer VW has extended the production stop due to the corona crisis. VW boss Diess said that the company was trying to use the break to restart.

Volkswagen is extending the production stop in Germany by four working days in the Corona crisis. In the German plants of the Volkswagen Passenger Cars brand, Volkswagen Commercial Vehicles and Volkswagen Group Components, production will be suspended until April 9, Volkswagen announced on Thursday evening in Wolfsburg.

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According to its own statements, the car manufacturer is reacting "primarily to the falling demand in the automotive markets and the challenges in the supply chain". At the same time, work is being done to get back into production as quickly as possible, it said.

Production stopped last week

At VW, all German plants and locations in other European countries have been temporarily closed since last week due to interrupted supply chains, weak car sales due to the crisis and the risk of infection. Initially, it was decided to close by April 5th.

Around 80,000 VW employees in Germany receive short-time work allowances, which the company increases from the regular 60 or 67 percent (for employees with children) of the net wage to almost 100 percent.

The basis for these additions are collective agreements. An extension of short-time work will be applied for for around 80,000 employees of Volkswagen AG, it said. It is planned to end the short-time work with the night shift from April 9th to April 10th. The plants in Dresden, Emden, Osnabrück, Wolfsburg, Zwickau and Volkswagen Commercial Vehicles in Hanover as well as the Volkswagen Group Components plants in Braunschweig, Kassel, Salzgitter, Chemnitz, Hanover Components and the German SITECH plants are affected.

When ramping up production, Volkswagen will also fall back on experience in China, where almost all plants are now producing again and the market seems to be slowly normalizing.

Diess: Going from a strong position into a crisis

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VW CEO Herbert Diess has warned that the coronavirus pandemic may have long-term consequences for the car manufacturer. “We are entering this crisis from a strong position,” he said on Thursday evening on the ZDF program “Markus Lanz”. “But our sales worldwide are standing. We do not make any sales, we do not make any sales outside of China.”At the moment, the manufacturer is“practically not getting rid of any”cars in any of the other markets because the demand is low. As a result, the liquidity decrease sharply - Diess spoke of up to two billion euros per week.

“We are reducing our expenses. We postpone projects that are not critical to success,”said the manager. He could not guarantee whether all of the currently around 80,000 short-time workers in Germany would be able to work fully again after the ongoing plant closings: “It will depend on: How quickly can we overcome this crisis?” In the event of a prolonged economic downturn, it would “certainly be negative Have an impact on our business”.

Diess expects that the group and its employees will be able to cushion the problems. For this it is important to use the time of the production interruptions: “We have to prepare for the restart.” New hygiene measures and larger distances on the belts are necessary. “I am glad that we now have at least three weeks to reorganize. I am confident that we will manage to rebuild in such a way that no one will be infected.”VW had recently extended the production stop in Germany due to the Corona crisis by four more days until April 9th. The tapes have been standing still for a week. (dpa)

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