Coronavirus paralyses the automotive sector

Major car groups are also halting operations at their main factories in Spain. Ford, SEAT, Renault, Volkswagen, Nissan… and counting.

COVID-19 continues its spectacular spread across Europe and, above all, in Spain. Our country is one of the most affected by this virus and, for this reason, a state of alarm has been in force since last Saturday, 14 March. Yesterday we told you about the specific situations in which you may use your car during the lockdown period. But remember: only in cases of extreme necessity, otherwise, stay at home.

The car industry is grinding to a halt en masse because of the coronavirus and its easy and extreme transmission. Many car factories in Spain have stopped production, with dire consequences for the national economy. Let us recall that the automotive sector is one of the pillars of the Spanish economy. Some brands have done so to prevent or slow the spread of the virus, while others have done so because employees at the plants themselves have already tested positive.

These are the brands that have ceased activity

SEAT began by reducing production at its Martorell plant, Barcelona, but has finally halted production indefinitely. The Spanish firm had planned to return to normal over the course of this week, but once the state of alarm was declared, the period of inactivity will continue until further notice.

The Ford factory in Almussafes, Valencia, ceased operations yesterday after three coronavirus cases were confirmed among its employees. According to the American firm, the protocols were good but have still failed to prevent it. The shutdown is expected to continue for the whole week, and the situation will be reassessed next week.

Renault is one of the brands with the most factories in Spanish territory, and all of them have now halted production. Those in Seville, Palencia and the two in Valladolid have ceased activity for these days for the time being, with the possibility of inactivity extending for another week. The PSA Group also adopted these measures from yesterday, halting production at its Spanish plants.

Nissan has a factory in the north of Barcelona that for some time has been operating at a very low percentage of its capacity. A plant doomed to disappear and which, because of the coronavirus, is also forced to cease operations. The star brand has also halted production at its Basque plant in Vitoria, and Mercedes has assured that the stoppage will be indefinite until further notice. The other German company also affected by the virus is Volkswagen. The shutdown is also planned for this week, with the possibility of extending it by one or more weeks.

The most damaging aspect of this whole situation is that all the companies we have mentioned have already implemented, or are considering implementing, a temporary employment regulation procedure (ERTE). This authorisation allows the company to temporarily suspend the employee’s contract, although the employee remains with the company, but without receiving their corresponding salary.