Some had feared back in January, while others are largely ignored, and a few are actually woke up last weekend: The crisis in the auto industry is there. Almost all manufacturers riding their productions in Europe, or have already done it. Always with the same justification: Coronavirus and the lack of demand on the market.
First, the car set works in the North of Italy (Fiat) – the front of Coronavirus in the worst – affected Region in Europe-their work. Nissan, the PSA group (brands Citroen DS, Opel and Peugeot) as well as Seat after moved with their European plants in the last few days. And now, the German manufacturers follow.
Now, Audi, BMW, Daimler and VW
Until VW announced that production of the weekend in Europe to suspend; shortly thereafter, Audi, BMW and Daimler, with similar messages, or announcements of short-time work followed; meanwhile, Porsche also wants to close down from next Monday. The plant closures will take at least two to four weeks. Also in the case of Ford, it is assumed that the current production break is likely to take several weeks. Stuart Rowley, President of Ford of Europe, said: “Due to the dramatic impact of this ongoing crisis on the European market and the automotive supply industry, we set the production at our key locations in continental Europe, temporarily.”
production simply can not stop
The complete shut down of car production, can also be simple with a single rotary Switch. For many years, the modern mass work production of a vehicle in accordance with the so-called Just-in-Time principle. This means that many suppliers will bring their modules, components to complete platforms, car bodies or engines, to a sophisticated logistics system just in time for the production line. So, waiting times, costs or special expenses to be avoided, and it doesn’t need a place to camp. Therefore, this precise and internationally-coordinated logistics need to step chains will be logged out.
The shutdown of a car plant or an entire production network of around seven to ten days therefore. Accordingly, the production will run after the crisis, also not quickly back to normal.
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