European car factories shutting as virus fears take toll

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Companies are scrambling to deal with infections among staff, highlighting the risks to business beyond supply chains.

Barcelona - Europe's major car and parts makers rushed on Wednesday to close factories and cut output in Italy and considered sending workers home elsewhere, in the first signs that coronavirus is disrupting the region's struggling automotive industry.

Italian tyremaker Pirelli had said on Tuesday it was cutting production at its Settimo Torinese plant in northern Italy after a worker tested positive for the virus. The French carmaker was beefing up safety rules on Wednesday at its Mulhouse plant with a 5000-strong workforce in eastern France after one employee tested positive, a spokeswoman said. The man has been on sick leave since February 29.

VW's Czech Skoda unit also said there was the risk of a shortage of parts from China that might affect several of its plants.The disruptions are the latest blow to Europe's car makers, which are struggling with weak global demand and high costs of meeting the region's tough emissions targets. Seat would make temporary layoffs if it had to cut production due to supply issues, the spokesman said.

 

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