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BMW to shut down factories over coronavirus

BMW

German carmaker BMW said Wednesday it would close European and South African factories accounting for half its output for a month, matching other car giants stricken by coronavirus containment measures. It also warned that profits this year would be significantly lower as a result of the crisis.

“From today, we will shut down our European car factories and the Rosslyn factory in South Africa,” chief executive Oliver Zipse said, adding that the interruption is expected for now to last “until April 19″. BMW’s factories around Europe — in Bavaria, elsewhere in Germany and further afield combined with the South Africa plant accounted for half the 2.56 million cars the group built in 2019.

Around Europe, other manufacturers including Mercedes-Benz parent Daimler, Volkswagen, Ford, Fiat and Peugeot have also moved to shut factory doors through the coronavirus crisis. As for many goods, demand for cars will sink sharply” because of the virus and associated containment measures, BMW CEO Zipse said.

Germany's BMW

Workers at the Munich-based group benefit from “highly flexible and effective working-time tools” that can help cushion the impact, he added. The German government has already simplified rules governing compensation for workers whose hours are slashed during the crisis. BMW finance director Nicolas Peter said the group now expects pre-tax profits this year to be “significantly lower” than the 7.1 billion euros ($7.8 billion) reported in 2019.

German carmaker BMW said Wednesday it would close European and South African factories accounting for half its output for a month, matching other car giants stricken by coronavirus containment measures. It also warned that profits this year would be significantly lower as a result of the crisis. From today, we will shut down our European car factories and the Rosslyn factory in South Africa,” chief executive Oliver Zipse said, adding that the interruption is expected for now to last “until April 19”.

BMW’s factories around Europe in Bavaria, elsewhere in Germany and further afield — combined with the South Africa plant accounted for half the 2.56 million cars the group built in 2019. Around Europe, other manufacturers including Mercedes-Benz parent Daimler, Volkswagen, Ford, Fiat and Peugeot have also moved to shut factory doors through the coronavirus crisis.

“As for many goods, demand for cars will sink sharply” because of the virus and associated containment measures, BMW CEO Zipse said. Workers at the Munich-based group benefit from “highly flexible and effective working-time tools” that can help cushion the impact, he added.

The German government has already simplified rules governing compensation for workers whose hours are slashed during the crisis. BMW finance director Nicolas Peter said the group now expects pre-tax profits this year to be “significantly lower” than the 7.1 billion euros ($7.8 billion) reported in 2019.

In other news – Zodwa Wabantu speaks about the effects of Covid-19 on the entertainment industry

Local entertainer Zodwa Wabantu has spoken out about the effects the coronavirus is having on the South African entertainment industry. Speaking to TshisaLIVE, the “Zodwa Wabantu: Uncensensored” star shared that the coronavirus has hit entertainers hard as they have had most of their bookings cancelled. Read more

Source: eNCA

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