While Elon Musk plays down the coronavirus, the factories of Fca, Ferrari, Ford, Lamborghini, Psa, Renault and Volkswagen come to a halt. After China, the effects of the pandemic shift to Europe.
First, in a tweet on 6 March, he plays it down: "The coronavirus panic is dumb." Then, a few days later, Elon Musk adjusts his stance and, as Forbes reports, first reassures Tesla employees, then advises them to stay at home. Finally, he closes the matter with this: "My frank opinion remains that the harm from the coronavirus panic far exceeds that of the virus itself." In other words, the damage caused by coronavirus panic far outweighs that of the virus itself.
A sense of calm — that of Musk and of the US car industry — that could prove, to say the least, incautious. In Europe, meanwhile, the latest announcement is the one made in Berlin by Volkswagen, at the annual conference (held strictly via livestream) for the presentation of its 2019 financial results: the German group will halt production at many factories in Germany and across Europe due to the coronavirus. "Most factories in Europe will close shortly for at least two or three weeks," said group CEO Herbert Diess. While the situation in China is stabilising, in Europe it is worsening by the day. A sharp fall in sales and uncertainty in supply chains are the main causes, which is why numerous production stoppages across Europe are imminent.
Fiat Chrysler Automobiles has announced that its subsidiaries Fca Italy and Maserati will temporarily suspend production at most of their manufacturing plants in Europe. The suspension is temporary and, at least for now, will remain in effect until 27 March. "The production suspension is being implemented in such a way as to allow the group to restart production promptly when market conditions permit," states an Fca press release. The Italian plants set to close are those in Melfi, Pomigliano, Cassino, Mirafiori, Grugliasco and Modena, along with the production sites in Kragujevac, Serbia, and Tychy, Poland. Part of these production stoppages will be used to carry out reviews of manufacturing processes and quality controls.
The Psa group entrusted a brief press release with the difficult, yet unavoidable, decision: "Due to the acceleration, observed in recent days, of serious coronavirus cases near certain production sites, disruptions to supplies from key suppliers, and the sharp downturn in automotive markets, the chairman of the managing board, in agreement with the members of the crisis unit, has decided to adopt the principle of closing plants until 27 March. Psa is gradually suspending production at all its European sites: in Spain in Madrid, Zaragoza and Vigo; in France at the sites in Mulhouse, Poissy, Rennes and Sochaux; in Germany in Eisenach and Rüsselsheim; in England in Ellesmere Port and Luton; in Poland in Gliwice; in Portugal in Mangualde; and in Slovakia in Trnava.
For now, the closure of the Sant'Agata Bolognese plant is set to last until 25 March. But the situation is evolving day by day, and it is possible that the stoppage at the Lamborghini sports car factory could be extended further. "This measure is an act of social responsibility and of great sensitivity towards our people, given the state of emergency we are experiencing in Italy these days and which is also developing abroad," explained CEO Stefano Domenicali. "As we have done up to now, we continue to monitor the situation so as to react quickly and effectively with the support of our colleagues and to be able to restart with energy at the right moment."
Following the closure of its plants in Spain, Renault has decided to shut down all its factories in France as well. The carmaker's management made the announcement. All "production activities at industrial sites in France until further notice, depending on how the health situation develops," are to be suspended, a company spokesperson said. In France, the suspension of industrial activities will affect 12 sites and 18,000 employees. In Spain, the factories affected are those in Valladolid, Palencia and Seville, which employ just under 10,000 people. In addition to the popular 1.5-litre diesel engine that equips many Renault models, the Spanish production sites assemble the Captur SUV — one of the brand's best-selling models — the Kadjar, and the Megane saloon, while the Seville factory (1,100 employees) produces gearboxes.
For now, a production shutdown of two weeks is planned, starting from Monday 16 March. What comes next remains to be seen. The announcement was made by the joint executive committee of management and trade union in a statement. Due to the coronavirus, Ferrari's plants in Maranello and Modena are closing, with the exception of a small number of staff. "The two-week period of absence for Ferrari workers — specifies a statement from Fim-Cisl Emilia Centrale — will be covered by contractual arrangements paid for entirely by the company."
Vehicle and engine production suspended at Ford's main manufacturing sites in continental Europe from Thursday 19 March. From Cologne, Ford announces from its German headquarters the temporary suspension of vehicle and engine production in response to the growing impact of the coronavirus. "This action is expected to continue for several weeks," the statement explains. "While the impact of the coronavirus on our facilities has fortunately been limited so far, its effects on our employees, dealers, suppliers and customers, as well as on European society as a whole, are unprecedented," said Stuart Rowley, president of Ford Europe.
