Virus disrupts truck manufacture across Europe
The manufacturing operations of Europe’s major truck brands were feeling the full effect of Covid-19 last month, forcing firms to announce the temporary closure of various production units across the continent.
Detailing production shutdowns at its plants in Sweden, France and the Netherlands, Scania cited component shortages and disruptions in the supply chain as a result of the disease’s spread across Europe as key reasons for the decision. The firm said it was in close dialogue with union representatives as regards the situation.
CEO Henrik Henriksson said: “The management and employee representatives both highly appreciate the state support measures that are now being made available in the countries where our staff now temporarily will lack work.”
Meanwhile, sister firm MAN Truck & Bus, which forms part of Volkswagen subsidiary Traton alongside Scania, said it had been forced to temporarily halt production at its Munich site. Production at the other plants would be shut down individually, it said.
“MAN is constantly reassessing the situation and reacting accordingly,” said the company, which also announced short-time working for its German locations from 23 March.
Production would also be scaled back at non-German plants, the firm said, adding: “MAN is doing everything in its power to maintain full operation of its sales and service locations worldwide as long as the overall situation allows, in order to secure supply chains.”
Among other manufacturers affected were Mercedes-Benz parent company Daimler, which suspended all European production in mid-March for an initial two-week period, including its commercial vehicle operation. “With these closures, Daimler is helping to protect its workforce, to interrupt chains of infection and to contain the spread of the pandemic,” said the manufacturer.
“At the same time, this will help the company to prepare for a period of temporarily lower demand and to protect its financial strength… “Daimler’s management is monitoring the situation constantly and will take further measures as required. Full operations will be resumed when the situation improves.”
Volvo Group, which manufactures Volvo and Renault trucks, said it has suspended “all operations at most locations”.
“The measure is taken to help the company to prepare for a period of temporarily lower demand and to protect its employees, customers, the company and society as a whole,” it said.
DAF parent group Paccar also halted truck and engine production at facilities across the world until 6 April, then later extended this to 20 April, promising to “review future actions on a regular basis”. Its facilities include DAF’s Eindhoven, Netherlands and Westerlo, Belgium sites, as well as Leyland Trucks in the UK.
Iveco owner CNH Industrial suspended most assembly operations in Europe for two weeks. The decision was: “driven by disruptions in our European supply chain, that do not allow for an efficient operation,” said Hubertus Mühlhäuser, then chief executive officer.
Despite the manufacturing closedowns, major truck brands are emphasising that they are doing all they can to maintain parts and servicing capacity, in order to ensure that crucial transport operations can continue their vital work during the Covid-19 outbreak.
On 27 March, the Society for Motor Manufacturers & Traders (SMMT) said that domestic van, bus and truck production in the UK was “largely expected to be on shutdown for the coming month”, but that the sector would strive to ensure component production and maintenance service provision would continue, to support essential transport, delivery and emergency service fleets.
Mike Hawes, SMMT chief executive, said: “The UK’s commercial vehicle sector is critical to the fight against coronavirus, working night and day to deliver food, medicine and other essential goods and services to support society’s most vulnerable and help prop up the economy.
“Government’s pledge of emergency finance and other measures to help protect these businesses and workers during the crisis has been widely welcomed but it is now about getting that relief to all companies in the fastest time possible.
“Meanwhile, additional provisions for official road-approval testing to get even more essential vehicles in service and supporting the national effort must also be implemented urgently.”
