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Volkswagen extends production halt as demand sinks and supply chains falter

FILE PHOTO: LA Auto Show in Los Angeles

FRANKFURT (Reuters) - Volkswagen <VOWG_p.DE>, the world's biggest carmaker, said on Thursday that it will extend stops to production in Germany as it deals with fallout from the coronavirus outbreak.

The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, said that it was responding to weakening demand and supply chain disruptions.

The extension of four days until April 9 involves all its German plants for Volkswagen passenger cars, commercial vehicles and components.

Volkswagen has been taking measures to secure liquidity, its supply chains, and to continue with strategic projects such as the launch of the company's ID.3 electric car and the supply of battery cells.

The carmaker said that it had applied for a government programme to reduce the working hours of 80,000 employees.


(Reporting by Tom Sims; Editing by Chizu Nomiyama, Kirsten Donovan)