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Tesla Stays Open While Daimler VW Suspends Production

A hot news saying Daimler will shut factories for two weeks, starting from next week Monday just broke.

It is virtually impossible for workers to maintain a safe distance from each other. Anybody that works in the industry knows this.

On Tuesday (March 17) European aerospace giant Airbus said it was suspending production at French and Spanish plants.

Reuters sources say it’s signaled it will need government aid if the crisis lasts several months. A day earlier U.S. rival Boeing confirmed it’s talking to the White House about help for itself, and the whole sector.

By mid-afternoon Airbus shares were down over 10%, while Boeing opened with big losses in U.S. trade. Carmakers are in trouble too.

Volkswagen Group, the world’s biggest, says it’s suspending production at factories across Europe.

This news broke few hours after Volkswagen made similar announcement. Tesla on the other hand, been declared an “essential business” and will remain open during the San Francisco Bay Area’s three-week “shelter in place” lockdown to rein in the spread of the coronavirus, according to the Los Angeles Times.

If you’re wondering what makes Tesla’s automobile factory in Fremont, Calif., “essential,” you’re not alone. “That’s a good question,” said Alameda County spokesman Ray Kelly, who added, “We’re in uncharted waters right now.”

Due to the worsening situation of the COVID-19 pandemic, the Daimler Group has decided today to suspend the majority of its production in Europe, as well as work in selected administrative departments, for an initial period of two weeks. By taking this action, the company is following the recommendations of international, national and local authorities. The suspension applies to Daimler’s car, van and commercial vehicle plants in Europe and will start this week. Connected to this is an assessment of global supply chains, which currently cannot be maintained to their full extent. An extension of this measure will depend on further developments. Wherever operations need to be continued, the company will take appropriate precautions to prevent the infection of its employees.

With these closures, Daimler is helping to protect its workforce, to interrupt chains of infection and to contain the spread of the pandemic. At the same time, this will help the company to prepare for a period of temporarily lower demand and to protect its financial strength.

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