18 Mar 2020

MAN, SCANIA, MERCEDES-BENZ, DAF ARE SHUTTING DOWN PRODUCTION SITES

The impact from the Corona virus, Covid-19, is becoming bigger and bigger. After passenger car manufacturers like the Fiat Group, PSA, BMW are reducing production or stopping it all together for at least two weeks, now also commercial vehicle manufacturers like MAN, Mercedes-Benz and Scania are shutting down production. Also because of travelling bans the coach industry has stopped almost entirely.

At MAN, Joachim Drees CEO and member of the Board of Traton SE, issued a statement saying that because the corona situation has worsened dramatically it forced MAN to take intermediate actions. “In view of the unclear overall situation and the almost hourly changes in events, we as MAN expect further and also increasing bottlenecks in the coming days, both in supplying production and in delivering vehicles and parts. This and our concern for the welfare of our employees is forcing the company to apply for short-time work at its German production sites. Production will also be scaled back at non-German plants. We at MAN will stop larger areas of our production from 23rd of March until further notice.”

The same message was send by Daimler that 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. The suspension applies to Daimler’s car, van and commercial vehicle plants in Europe and will start this week.

Scania is planning to stop operations at most of its European production units (plants in Sweden, the Netherlands and France). on Wednesday 25 March due to component shortages and the major disruptions that have occurred in the supplier and logistics chain as a result of the spread of COVID-19 in Europe. Scania expects to resume production within two weeks. "To ensure our customers' vitally important transports for society, our service workshops and parts centres will continue their operations," says Scania's President and CEO Henrik Henriksson. Scania's industrial operations in Latin America, which account for about one-fifth of the company's production volume, will still continue as planned.

Also DAF is shutting down its factories in the Netherlands (Eindhoven), United Kingdom (Leyland, Haddenham), and Belgium (Westerlo). Reasons are a shortage of parts and the welfare of its employees. Westerlo will be shut down Thursday evening 19 March until further notice and Eindhoven and Leyland Monday 23 March. This concerns the production sites. DAF emphasizes that its service department, product development and marketing stays in function.



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