Coronavirus Impact: Daimler Suspends Production In Europe For Two Weeks

Published March 20, 2020
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The company has paused work in select administrative departments as well

Daimler has announced that it will suspend the majority of its manufacturing production as well as administrative operations in Europe to stem the spread of the COVID-19 coronavirus. The suspension will start this week and will stay in place for two weeks. In places where work isn’t suspended, the carmaker will take precautions to protect its employees.

“Connected to this is an assessment of global supply chains, which currently cannot be maintained to their full extent,” says Daimler. Supply chains have been affected globally due to the coronavirus and this period will allow Mercedes to save two week’s worth of production costs in this period of low demand.

The COVID-19 coronavirus is an infectious new strain of zoonotic viruses which causes moderate to severe symptoms including respiratory illness in humans. The virus was first identified in China, where it disrupted manufacturing production and daily life in entire provinces. Experts believe that social distancing, or physically isolating oneself from other people, could be an effective way to slow down the spread of the virus.

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“Given the ongoing spread of COVID-19, the economic effects on Daimler cannot be adequately determined or reliably quantified at this time,” said Daimler. The suspension will remain in place for two weeks but could be extended if the virus continues to spread.