CNH Industrial halts most European plants due to virus-related supply constraints

MILAN (Reuters) – Vehicle maker CNH Industrial (MI:) said on Friday it was suspending most of its European assembly operations for two weeks due to the coronavirus outbreak, citing supply chain constraints.

The Italian/American maker of Iveco commercial vehicles, farm machinery, construction equipment and powertrains, adds to a long list of European manufacturers closing plants or reducing production rates as the virus spreads.

The decision was driven by disruptions in the group’s European supply chain, “that do not allow for an efficient operation”, Chief Executive Hubertus Muhlhauser said in a statement.

“During these temporary shutdowns, we will also undertake further extensive sanitization and deep cleaning procedures,” he added.

Friday’s announcement follows a decision last week by CNH Industrial to halt operations at four Italian plants.

The group, however, said most its plants producing components would remain operational, though at lower speed, to ensure supply continuity to the group’s facilities outside of Europe. European parts logistic hubs and most dealer locations will remain open too.

CNH Industrial currently has 28 plants closed in Europe out of a total of 30, a spokesman said.

CNH Industrial said it was working with unions and works councils to implement the temporary shutdowns and the reopening of the plants. The group is constantly monitoring the situation in all markets in which it operates and will take further measures as required, it added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.