Scania to halt Europe truck production over virus

Scania, part of Volkswagen's Traton group, said Wednesday it was halting most of its European truck production following disruptions in the supply chain as a result of the coronavirus.

The said in a statement that production at most European units would stop from March 25 "due to component shortages and the major disruptions that have occurred in the supplier and logistics chain as a result of the spread of COVID-19 in Europe."

Some production would keep running so as to not hurt Europe's infrastructure, however.

"To ensure our customers' vitally important transports for society, our service workshops and parts centres will continue their operations," Scania chief executive Henrik Henriksson said in a statement.

Scania expected the closure to last for two weeks and said it would directly affect workers at the company's plants in Sweden, the Netherlands and France.

The truckmaker, headquartered in Sweden but owned by Volkswagen, employs 52,000 people worldwide, of which 14,000 are based in Europe.

The company produces 100,000 trucks and buses a year, 80 percent of which are made in Europe.

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© 2020 AFP

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