Volkswagen’s Portugal plant suspends production

LISBON, March 16 (Xinhua) — Volkswagen Autoeuropa, the largest Portuguese exporter and auto producer, was forced to stop production on Monday by a lack of personnel caused by the COVID-19 pandemic, local media reported.

The factory management realized that none of the three daily shifts could be guaranteed, as many workers decided to stay at home with their children after the government suspended classes in an attempt to contain the pandemic, according to the website of the Portuguese newspaper Publico.

"In view of the absences forecast from March 16, it was also decided to reduce daily production from 890 to 744 units, helping to adjust the factory to the conditions required by national authorities. Both decisions were communicated to all employees on March 13," the day after the announcement of the suspension of classes till the Easter holidays, the company's top management said in a statement.

Anxiety among the workers was triggered further over the weekend when seven who had "returned from countries at risk" were put in preventive quarantine.

"As the situation unfolded over the weekend, and as new data became known, new national and international decisions emerged, and with the forecast of absences as of the night shift of March 16, Volkswagen Autoeuropa communicated to its employees and suppliers the decision to suspend Monday's production shifts," the statement said.

In 2019, Autoeuropa was the largest national exporter of goods, returning to the top of a list that it had ceased to lead 14 years ago.

The company had about 6,000 employees at its peak due to the commercial success of the Volkswagen T-Roc model, whose exclusive worldwide producer is Autoeuropa.

Economic experts predict that the pandemic will cost Portugal four billion euros (4.46 billion U.S. dollars) per month, local media reported on Monday.

With economic activities almost stagnant in key sectors of the Portuguese economy, a recession is the most likely scenario, economists warned on Monday, adding that monthly losses for the Portuguese economy may reach four billion euros. (1 euro = 1.12 U.S. dollars)

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