Daimler AG Suspends Production Lines in Europe Due to COVID-19

Yesterday, FCA Group and Group PSA stopped their production lines due to interrupted supplies which are affected by the COVID-19. That virus is the reason why Daimler AG also suspends its production lines in Europe. Daimler AG reported that the suspend is going to affect and some of their administrations. All of these actions had taken under recommendations of international, national, and local authorities. 

Daimler AG suspends production lines in Europe due to COVID-19

The suspend will affect Daimler’s car, van, and light commercial vehicles. The period of the forced break is initially for two weeks.  Daimler AG confirmed that will take any actions to protect their employees and the company is going to follow the ongoing situation. 

The COVID-19 leads to overprotect people in the spread of the virus which has to be interrupted. Meanwhile, Daimler AG is going to strengthen its financial resources during the break. At the moment the automotive market is very slow and if production does not stop this could increase the costs and the people to be at protentional risk. The first thing is going to lose money and the second could affect employees’ health. Both situations will have negative effects that will lead to difficulties in front of the company especially when that virus goes away - hopefully to the end of March. 

Daimler AG also reported: 

Given the ongoing spread of COVID-19, the economic effects on Daimler cannot be adequately determined or reliably quantified at this time.

Daimler’s management is monitoring the situation constantly and will take further measures as required. Full operations will be resumed when the situation improves.