Volkswagen Says COVID-19 Shutdown Costs Are “Acute Economic Risk” To The Company

Read more on this subject: Transportation
News Story Source: https://www.zerohedge.com, by Tyler Durden
Chief Executive Herbert Diess said on Thursday that the company wasn't making sales outside of China and was actively looking at ways to resume production that wouldn't harm its staff, according to Reuters. 

"We need to rethink production. The discipline which we had in China we do not yet have at our German locations. Only if we, like China, Korea or other Asian states, get the problem under control then we have a chance to come through the crisis without job losses. It requires a very sharp intervention," Diess said.

While demand has picked up in China again, it is only half the level it was at prior to the crisis, Diess noted.

"We are not making sales or revenues outside of China and have a high level of fixed costs of around 2 billion euros a week."

Meanwhile, the ECB is doing its best to prop up businesses for the time being. VW's Chief Financial Officer Frank Witter called for the ECB to continue to accelerate purchases of sho
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