Milan
Carmakers including Fiat Chrysler (FCHA.MI), Peugeot (PEUP.PA), Volkswagen (VOWG_p.DE) and its premium unit Audi (NSUG.DE) throttled back production at their European plants on Monday as they grapple with the coronavirus crisis and plunging demand.
Worker representatives in Italy, France, Belgium, Spain and Germany have demanded stricter controls on hygiene, disinfection and isolation for employees working heel-to-heel on Europe’s production lines. Audi said it was struggling to keep production running at its plant in Brussels, Belgium, because some workers had downed tools over concerns they were exposing themselves to the virus.
The topic of how to protect employees was now the subject of discussions between management and unions, the carmaker said. Fiat Chrysler Automobiles (FCA) is halting production for two weeks at most of its European plants to help protect staff and adjust to a slump in demand, the Italian-American carmaker said.
Italy has been the European country worst hit by the crisis and the first to enforce a nationwide lockdown, which has now been replicated by Spain and to a lesser extent France as the COVID-19 virus sweeps through the continent. Measures in Italy were agreed after all-night talks with companies and trade union leaders to introduce tighter controls on workplace practices and cleaning protocols, as well as steps to encourage more home-working, Economy Ministry undersecretary Pier Paolo Baretta said.
French carmaker PSA, which owns the Peugeot, Opel and Vauxhall brands, also said it was closing its European factories until March 27. “We have had three positive cases of COVID-19 on the Valencia site in a 24-hour period, two of which involved more isolated workers who did not enter the assembly operations,” a spokeswoman said on Monday.
Ford employees who had close contact with the affected workers are now in self-isolation. “We will take all other appropriate steps to ensure that risk from this situation is minimized,” Ford said.—Reuters
