Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road Database
dpa

HOME > dpa

Volkswagen to pause production in response to coronavirus

March 18, 2020


Abstract : The Volkswagen Group is to temporarily shut down production at the vast majority of its plants starting Friday in response to the coronavirus pandemic, sources from the German auto giant's works council said.

New Volkswagen vehicles are parked on a freight train in front of the Volkswagen plant in Zwickau. Volkswagen intends to interrupt production at many plants due to the growing danger to the workforce. (picture alliance / dpa)

The Volkswagen Group is to temporarily shut down production at the vast majority of its plants starting Friday in response to the coronavirus pandemic, sources from the German auto giant's works council said.

They told dpa that the decision was taken in consideration of employees whose "work is carried out shoulder to shoulder ... on the assembly lines," arguing that this was not in keeping with German government guidelines on social-distancing.

Europe's largest carmaker on Tuesday reported a boost in profits for its core VW passenger cars brand in 2019, but warned of a "very difficult" year ahead.

"The corona pandemic presents us with unknown operational and financial challenges," said Herbert Diess, chairman of the management board, on announcing the carmaker's final 2019 results.

The annual press conference was held online, with the Wolfsburg-based company avoiding a bigger event due to the risk of spreading infections.

Operating profit before special items for VW passenger cars increased to 3.8 billion euros (4.2 billion dollars), compared to 3.2 billion the previous year.

The coronavirus pandemic is causing a major headache for the firm, due to its impact on global supply chains and demand in key markets such as China, where the virus broke out.

In addition, "the diesel issue," as Volkswagen refers to the emissions cheating scandal that has rocked the company in recent years, continues to take its toll.

The costs for items such as legal fees and product recalls related to the scandal came in at 1.9 billion euros in 2019, largely unchanged on the year, the carmaker said.

And this year brings further costs, with the company set to pay out damages to German consumers in a class-action lawsuit.

At 88.4 billion euros last year, sales revenue for Volkswagen's passenger cars went up by 4.5 per cent, with the operating return on sales before special items increasing slightly to 4.3 per cent, compared to 3.8 per cent in 2018.

At the group's Porsche subsidiary, the company reported a modest increase in operating profit by 2.4 per cent year-on-year to reach 4.2 billion euros.

Skoda, Seat and Bentley, as well as truck-makers Scania and MAN, also saw boosts to their bottom line.

Meanwhile, operating profits at subsidiary Audi slumped from 4.7 to 4.5 billion euros, and from 780 to 510 million for Volkswagen's commercial vehicles.

Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.

Scan the QR code and push it to your mobile phone

Keyword: volkswagen dpa

Reading:

Industry: Germany must speed up clean energy roll-out

Huawei is biggest patent applicant in Europe

Adidas posts strong 2019 results, but coronavirus impact looms

100 EU regions most in need of cash to soften green transition

Robots conquer trades and crafts - chamber opens competence center

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial