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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

Bentley poised to join four-door coupe game?

Bentley may be all hot and bothered with plans for its finally approved ultra-lux SUV, but the marque's attentions may not solely be limited to a two-box range expansion. That's according to AutoExpress, which quotes company CEO Wolfgang Schreiber as being interested in launching a 'four-door coupe' variant of its popular Continental range (pictured). According to Schrieber, "I definitely wouldn't say no to the idea... with the new Flying Spur, we have a model that supports the Mulsanne, and a coupe with four doors could sit below that."
The more rakish sedan isn't tipped to launch before 2016 - the brand will be too busy launching the Flying Spur and furthering work on the as-yet-unnamed SUV to pull ahead the project. The plan would appear to make a lot of sense, as the additional bodystyle on the back of the Continental platform would likely command more money than the rest of the line (see also: Mercedes-Benz CLS and BMW 6 Series Gran Coupe) while basically just being a new top hat on an existing architecture. This isn't the first time AutoExpress has promulgated this Bentley 4DC idea, however. Back in 2010, it offered a similar report, but at that point, it anticipated the model would be cheaper than the Continental, suggesting it would be based on a platform shared with the Audi A7.
AutoExpress notes the additional model would help Bentley achieve its ambitious sales targets to drive from last year's 8,510 units sold to 15,000 by 2018, though most of that volume still figures to come from the new utility vehicle.

Bentley, Lamborghini consider foreign production [w/poll]

Would a Bentley be a Bentley if it weren't manufactured in Great Britain? Would a Lamborghini be a Lamborghini if it were built outside of Italy? It may be hard to say either way, but we might find out sooner than later, because the latest word coming in from Europe is that the Volkswagen Group is considering expanding production for both these upscale brands outside their traditional homes.
According to the Autovisie section of Dutch newspaper De Telegraaf, the issue for both automakers comes down to their ambitious expansion programs. Both Bentley and Lamborghini plan to launch new SUVs - the former's being well under way, the latter's still awaiting approval - that would expand their annual production considerably: by 50 percent in Bentley's case, and by as much as 100 percent in Lamborghini's.
For now, both marques intend to handle the added production with additional assembly lines at their current facilities in Crewe and Sant'Agata Bolognese, respectively. But both could soon outgrow their relatively small plants - and with the Volkswagen Group operating countless factories across Europe and around the world, it wouldn't be hard to see these manufacturers shifting excess production outside of their home countries.