Volkswagen, Renault, PSA Group press the button to restart their production



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Manufacturers like Volkswagen, Renault and Daimler are restarting factory production in Europe, with many unknowns about the actual amount of car demand after restrictions are lifted and car purchases are likely impossible for most people, he writes. Bloomberg.

The world’s largest automaker Volkswagen continues to produce its electric car and said it expects to start European deliveries this summer, as originally planned. His schedule for launching the car at the company’s German factory in Zwickau has not changed.

Daimler is gradually resuming production of engines and other components this week, as well as preparation for key models, including the electric EQC.

The balancing act between preserving funds and spending part of them on car sales attempts is at a crucial stage as European countries begin to ease the blockages that have been holding back potential buyers for weeks.

Volkswagen does not expect car market to recover before summer

Volkswagen does not expect car market to recover before summer

The company is also considering new rules to ensure factory workers work at a safe distance.

Volkswagen has insisted that it will not back down from its project of the most important new model for the company for decades, while the manufacturer of the Peugeot Group PSA believes that it will be more restricted while sales are still uncertain.

Correct calculations are a great test for CEOs of auto companies as they seek to safely restore the supply chains necessary to return to normal operation. Car manufacturers have prepared hygiene measures, including disinfectants at car dealerships, to minimize the risk of contamination in showrooms or during car sales.

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For Volkswagen, selling an electric car is extremely important. It is the first car based on the new mass market standards for cars, which helps the German car manufacturer to meet the strictest emission standards in Europe. The new technology, called MEB, will be unveiled at two large factories in China this year.

In recent weeks, giant officials have acknowledged the complications involved in developing the software, but have rejected claims that the project will be delayed. The coronavirus pandemic stopped production last month.

Aston Martin Lagonda Global Holdings has chosen a more cautious approach. The British manufacturer said it intends to reopen its plant in Wales on May 5. Operations at its main factory in Hayden, England will resume later.

After acquiring Opel, PSA seeks new deals

After acquiring Opel, PSA seeks new deals

One of the candidates is Fiat-Chrysler.

French resistance

The restart of factories in France has been criticized by some unions, including the CGT, for saying that business is not essential to the economy. Still, Renault, tire maker Michelin and Toyota resist.

This week, Renault has begun the gradual opening of factories in France, starting with three engine and parts factories. Only a quarter of employees work under strict health measures, such as controlling body temperature, using protective equipment and additional disinfection at work. The company has already restarted production in Spain, Portugal, Morocco, Russia.

The automaker, which works to cut costs and negotiate billions of euros in government loans, plans to open its Flins plant near Paris and produce a Zoe electric car this month. The new battery-powered model is “tunnel light” in the context of quarterly sales figures, which say a 19% drop and a loss of € 5.5 billion.

PSA, maker of the Opel, Vauxhall and Citroen brands, has yet to announce a date for the restart of its European factories. CFO Philip de Rovira said the company was reluctant to start production this week before dealerships opened.

The French automaker forecast that the European car market will shrink by a quarter this year, saying it was even poised for a 50% decline.

“If we restart production, it is because we start selling cars,” de Rovira said. “It is important to have business activity before pressing the reset button.”



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