Daimler Suspends Operations in Europe, Warns Economic Impact “Undetermined”

Stuttgart, Germany – The Daimler Group, makers of Freightliner commercial motor vehicles, announced today it was shutting down its production in Europe.

“Due to the worsening situation of the COVID-19 pandemic, the Daimler Group has decided today to suspend the majority of its production in Europe, as well as work in selected administrative departments, for an initial period of two weeks,” a statement from the global OEM said. “By taking this action, the company is following the recommendations of international, national and local authorities.”

 

The suspension applies to Daimler’s car, van and commercial vehicle plants in Europe and will start this week.

The company said its global supply chains cannot be maintained to their full extent and warned the shut down could last longer than two weeks.

“An extension of this measure will depend on further developments. Wherever operations need to be continued, the company will take appropriate precautions to prevent the infection of its employees.”

 

Daimler said the closure is “helping to protect its workforce and contain the spread of the pandemic.”

The company acknowledged it was preparing for a “period of temporarily lower demand” as a result of the global health crisis.

“Given the ongoing spread of COVID-19, the economic effects on Daimler cannot be adequately determined or reliably quantified at this time,” Daimler said. “Full operations will be resumed when the situation improves.”

Truck makers have yet to shut down production in the United States as a result of the coronavirus pandemic.

Transportation Nation Network will be watching this closely in the coming days.

 


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