automobile news

European automakers revive factories even with coronavirus lockdown

European automakers revive factories even with coronavirus lockdown
European automakers revive factories even with coronavirus lockdown

Audi, a unit of Volkswagen Group, has become one of the few automakers who are opening their factories gradually in Europe as the lockdown for coronavirus keeps dragging across a majority part of the region. It was reported that about 100 workers at Hungary’s Goyer site of Audi, which is among the largest engine plants, have restarted output on the assembly line with a single-shift system. The company will be setting up the second line by the end of the week.

The manufacturers have been facing major economic blows after several government bodies in Europe had placed certain restrictions on public movement to fight the pandemic that has claimed over 120,000 lives across the world. This slump has indicated about 3 million lost sales of vehicles in Europe in the current year. The loss can amount to nearly 60 billion Euros in terms of lower revenue. 

The corporates and governments have been creating a strategy to exist after the restriction on movement has prolonged for several weeks. The efforts taken to get the economy back on track shall be gradual and will also face several setbacks and challenges once the virus reemerges.

Angela Merkel, Germany’s Chancellor, is expected to have discussions for steps with all the leaders of the German states to ease down restrictions. The discussions among the leaders will be influencing dates of the factory reopening for the automotive giants like BMW to Daimler in Germany, which is the heartland for carmakers. 

The supply chains are intertwined closely in the regions of Europe wherein the restriction on transport shall remain intact for the coming days, especially when the number of people infected is still high in certain areas. This will turn out to be more complex for the deteriorating industrial network of Europe. 

Industrial executives have given several warnings against an arranged restart in a haste and have asked for the leaders to take a coordinated European approach, despite the measures to fight against the crisis varying across countries.

 

Source Credit- https://www.autonews.com/manufacturing/automakers-audi-renault-begin-rebooting-european-plants