Automotive news - again continued
Michael Malterer
Global Automotive Sub-Sector Leader and Global Autonomous Vehicles Co-Leader, Partner
Daimler slowly restarts production: After a four-week production stop, Daimler slowly restarts large parts of its production. One focus of the resumed production is on drive and transmission technology, an area on which the other national and international factories are dependent. At some locations, two or three shifts are already planned. Strict hygiene regulations must be observed, which the Group and Works Council have developed on the basis of risk analyses for each workplace.
Daimler reduced a large part of its production in March and has applied for short-time work since April 6 until the end of the month. It is not possible to forecast when the group will reach its primary production level. In addition, the economic consequences of the Corona crisis are not foreseeable yet.
VW factory in Zwickau should be the first to build cars again: Car manufacturer VW wants to partially ramp up production at its Zwickau factory this week. The 8000 employees at the Zwickau factory will return to their jobs step by step, but most of them will still be on short-time work until May 3. Zwickau is thus the first car plant in Germany that VW is putting into operation. In Bratislava, the production lines should have been started already since Monday. In addition, the engine factory in Chemnitz will begin production again on Thursday. The other plants in Wolfsburg, Emden, Dresden and Hanover are scheduled to start production on April 27.
BMW extends production stop at its engine plant in Steyr: Instead of 18 April as planned, the Austrian BMW engine plant in Steyr will now reopen on 25 April. The reason is a review of the current demand situation and an assessment of the overall situation. BMW employs a total of 4500 people in Steyr. The Bavarian automobile company has extended its production stop in its other plants in Europe and North America until April 30th, where it was supposed to continue on April 19th. At the German factories, about 20,000 employees are currently on short-time work.
BMW sold 20.6% fewer cars in Q1 than last year. In Europe, about 80% of all dealerships have been closed due to the corona pandemic, in the USA the figure is 70%. In total, the global group sold 477,111 BMW, Mini and Rolls-Royce brand cars in Q1.
MAN will start truck production again: MAN intends to gradually resume truck production starting next week. The expected challenges are the supply of parts, the organization of work processes to protect employees and the demand for commercial vehicles. MAN stopped production in its bus and truck factories in mid-March due to interrupted supply chains and falling demand. However, some of the employees in production and administration will continue to work short-time. MAN has also announced "significant job cuts".
Toyota produces in Europe again: The Toyota plant in Valenciennes/France has reopened after the Corona forced break. After five weeks of closure, only 1000 of the 4000 employees may resume work at first. Furthermore, production has been reduced from 1000 to 50 cars per day. The small car Yaris is produced in the French factory. In addition, the Toyota plant in Poland will also open. Factories in Great Britain, Turkey and the Czech Republic will remain closed until at least May 4.
VW subsidiary Traton is feeling the impact of the Corona crisis: In the first quarter, the truck and bus manufacturer Traton recorded negative numbers. The operating profit of 160 million euros was about two thirds lower than in the previous year. Revenue was down eleven percent on the previous year at around 5.7 billion euros. Overall, the corona crisis has led to extensive production stops at Traton. The management currently does not believe it can make forecasts for 2020.
Automotive supplier Leonie receives commitment for a federal-state large guarantee: Leonie receives a commitment for a federal-state large guarantee for a 330 million euro business loan. The guarantee covers 90 % of the loan, which runs until 31.12.2022. The loan is expected to be signed in the near future. This step has become necessary because most of Leonie's customers have temporarily restricted their production due to the corona pandemic and Leonie is therefore experiencing temporary declines in sales. Leonie plans to be well financed with the loan until 2023.
Boost the car market through incentive programs: Importers want a three-step government incentive program to revive the ailing auto market. The state shall double the already existing purchase premium for e-cars - i.e. to a maximum of 9000 Euro, of which the manufacturers shall pay 3000 Euro as before. In addition, purchase incentives should be created for vehicles that emit less than 95 grams of CO2/km. Finally, a classic scrapping premium for older vehicles is required, which will be exchanged for cars with the newer Euro 6d and Euro 6d-Temp emission standards. The Zentralverband Deutsches Kraftfahrzeuggewerbe (ZDK) is requesting fast action so that the automobile market can be revived and its overflowing stocks effectively reduced to ensure sales for the restarting production.
Porsche helps with the acquisition of protective equipment: Porsche, DB Schenker and Lufthansa Cargo are currently ensuring the delivery of protective equipment from Shanghai to Germany. Up to six planes per week will land in Frankfurt and Munich. The material will be forwarded to Baden-Württemberg and Sachsen and handed over to the state governments for distribution.