VW re-starts the biggest automotive factory in Europe after shutdown of coronavirus
VW re-starts the biggest automotive factory in Europe after shutdown of coronavirus, the world’s largest sales carmaker, resumed work at its largest factory in Wolfsburg, Germany on Monday. Even, as inventory rates around the industry continue to increase as demand for coronavirus pandemic saps continues to rise.
Initially, encouraged by a decrease in infection rates, Germany has relaxed lockdown rules and carmakers rely on the ability of the nation to track and control the coronavirus to get back Europe’s largest economy to work.
Significantly, the Volkswagen Group, which owns the brands Skoda, Audi, Bentley, Porsche and Seat, is also rebooting production this week in Portugal, Spain, Russia, South Africa, the Czech Republic and South America. His plans mirror the activities of Renault, Peugeot and FiatChrysler rivals.
On Monday, FiatChrysler will open its Sevel plant in central Italy with plans to restart production at a pace ranging from 70% to 80%.
Meanwhile, after South Korea got a handle on the coronavirus, Hyundai Motor Co < 005380.KS > ramped up domestic production. Disappointingly, only to find that its cars were sitting in U.S. ports because the pandemic caused a significant hit in global demand.
However, in Wolfsburg, on Monday, about 8,000 employees began again constructing vehicles, including the VW Golf. 1,400 cars are being installed this week, followed by 6,000 cars in a fortnight, VW said.
Furthermore, production capacity at the Wolfsburg plant will start at around 10 per cent -15 per cent and hit about 40 per cent of pre-crisis rates in the week after, said Andreas Tostmann, VW’s manufacturing board member, Reuters.
“After weeks of standstill, restarting Europe’s biggest car factory is an important sign for our workers, our dealers, suppliers, the German economy and for Europe” Tostmann said.
VW has been revising its policies to incorporate additional hygiene steps. Staff are advised to check their temperature at home and be changed into their overalls, to prevent crowding in changing rooms at the factory.
Additional signs have been installed so that staff can stick closer to a 1.5-meter social distance rule. Employees are also being given additional time”. VW said.
Volkswagen began manufacturing components in early April in Braunschweig, Kassel, Salzgitter and Hanover. Fuethermore, it resumed manufacturing of cars in Zwickau and Bratislava on 20 April and in Chemnitz on 23 April.
Volkswagen plans to resume production in the United States at Chattanooga from May 3.
Volkswagen is also trying to whittle down pre-crisis inventory rates, the carmaker has said. As public life resumes in many parts of Europe it is pegging its hopes on rekindled interest.
Volkswagen said it had reopened about 70 per cent of its dealerships in Germany as of last week.
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