Due to the worsening COVID-19 pandemic, the Daimler Group has suspended “the majority” of its production in Europe, as well as work in some administrative departments, for an initial period of two weeks.
“By taking this action, the company is following the recommendations of international, national and local authorities,” the automaker said in a statement.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The suspension applies to car, van and commercial vehicle plants in Europe and will start this week.
Connected to this is an assessment of global supply chains which currently cannot be maintained to their full extent, Daimler said.
“An extension of this measure will depend on further developments. Wherever operations need to be continued, the company will take appropriate precautions to prevent the infection of its employees.
“With these closures, Daimler is helping to protect its workforce, to interrupt chains of infection and to contain the spread of the pandemic. At the same time, this will help the company to prepare for a period of temporarily lower demand and to protect its financial strength.”
It added given the ongoing spread of COVID-19, the economic effects on the company could not be adequately determined or reliably quantified.
“Daimler’s management is monitoring the situation constantly and will take further measures as required. Full operations will be resumed when the situation improves,” the statement added.
