CNH Industrial halts most European plants due to virus-related supply constraints
Reuters
Published Mar 20, 2020 01:14PM ET
MILAN (Reuters) - Vehicle maker CNH Industrial (MI:CNHI) said on Friday it was suspending most of its European assembly operations for two weeks due to the coronavirus outbreak, citing supply chain constraints.
The Italian/American maker of Iveco commercial vehicles, farm machinery, construction equipment and powertrains, adds to a long list of European manufacturers closing plants or reducing production rates as the virus spreads.
The decision was driven by disruptions in the group's European supply chain, "that do not allow for an efficient operation", Chief Executive Hubertus Muhlhauser said in a statement.
"During these temporary shutdowns, we will also undertake further extensive sanitization and deep cleaning procedures," he added.
Friday's announcement follows a decision last week by CNH Industrial to halt operations at four Italian plants.
The group, however, said most its plants producing components would remain operational, though at lower speed, to ensure supply continuity to the group's facilities outside of Europe. European parts logistic hubs and most dealer locations will remain open too.
CNH Industrial currently has 28 plants closed in Europe out of a total of 30, a spokesman said.
CNH Industrial said it was working with unions and works councils to implement the temporary shutdowns and the reopening of the plants. The group is constantly monitoring the situation in all markets in which it operates and will take further measures as required, it added.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.