Scania suspends European truck production over coronavirus

Scania suspends European truck production over coronavirus
Scania's headquarters in Södertälje. Photo: Jonas Ekströmer/TT
Swedish truck maker Scania is halting most of its European truck production in the wake of coronavirus disruptions.

The company said in a statement that production at most European units would stop from March 25th “due to component shortages and the major disruptions that have occurred in the supplier and logistics chain as a result of the spread of COVID-19 in Europe”.

Some production would keep running so as to not hurt Europe's infrastructure, however.

“To ensure our customers' vitally important transports for society, our service workshops and parts centres will continue their operations,” Scania chief executive Henrik Henriksson said in a statement.

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Scania expected the closure to last for two weeks and said it would directly affect workers at the company's plants in Sweden, the Netherlands and France.

The truckmaker, headquartered in Sweden but owned by Volkswagen, employs 52,000 people worldwide, of which 14,000 are based in Europe. The decision affects around 9,000 staff members in Sweden.

It was not immediately clear whether the affected workers would receive full pay during the closure, but the company said it was in discussions with unions and was satisfied with the government's support measures for Swedish companies.

The support offered by the government includes measures for short-term layoffs, whereby employers' wage costs can be halved but the employee still receives more than 90 percent of their salary, with the state covering the difference.

Scania produces 100,000 trucks and buses a year, 80 percent of which are made in Europe


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