Companies hit pause button as coronavirus infects economy

Layoffs, cutting costs and halting dividends… companies are scrambling to adapt as the coronavirus emergency hits demand and draconian measures taken to contain the illness undercut production and demand.

With the economic impact of COVID-19 threatening the survival of many firms, governments have pledged hundreds of billions to help them limp along — or failing that, to bankroll outright rescues or nationalisation if necessary.

Here are some measures companies have taken:

– Suspending production –

Several industrial giants, in particular in the automobile industry, have reduced or even suspended production.

America’s “Big Three” car makers — General Motors, Fiat Chrysler and Ford — will temporarily halt operations throughout North America through the end of the month, the companies said in conjunction with the auto workers union.

Nissan suspended production at its Sunderland plant in northern England, the automaker’s biggest plant in Europe, employing about 7,000 workers, and has also closed plants in Spain and Indonesia.

French giant Peugeot-Citroen is shutting down all production sites in Europe, and Italian-US carmaker Fiat Chrysler, with which it is in the process of merging, also intends to close most of its facilities on the continent, as does Ford.

Germany’s VW is shuttering most European plants for two to three weeks.

BMW said Wednesday it is shutting down production in its European and South African plants for one month.

Renault is halting production at plants in France, Spain and Slovenia, as well as Romania, Portugal and Morocco.

Scania, part of Volkswagen’s Traton group, is halting most European truck production following disruptions in the supply chain.

Tyre giant Michelin is halting production in Spain, France and Italy for at least a week.

Airbus said it was suspending work at its French and Spanish plants for four days to improve workplace safety.

High-end fashion giant Gucci, part of the Kering group, is closing all sites until March 20, while Hermes is shutting its manufacturing sites until the end of March.

In Germany, long-distance bus companies Flixbus and Blablabus said they were halting services as new travel restrictions take effect…….read more

 

Source: AFP

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