The German carmaker, which was expected to resume production on Monday, has cited supply-chain and logistical issues. The virus threatens to halve February car sales in China, the largest market for VW, BMW and Daimler.
Volkswagen has postponed the start of production by a week at all the Chinese plants that it runs in partnership with China’s SAIC, citing supply-chain and logistical issues caused by the coronavirus outbreak.
The German carmaker now expects to resume production on February 24. However, production at some of the plants that VW runs with the Chinese FAW Group resumed on Monday with the remaining plants expected to be operational in the coming days.
“We are working hard on getting back to our normal production schedule, while facing delays due to national supply chain and logistics challenges as well as limited travel options for production employees,” Nikolas Thorke, spokesman for Volkswagen’s China operation, told DW.
Volkswagen’s Chinese JVs delivered 4.21 million vehicles, or about 40% of total VW global sales, to buyers on the Chinese mainland and in Hong Kong in 2018.
VW rival Mercedes-Benz’s Chinese joint venture Beijing Benz re-started production of luxury passenger cars last Monday (February 10), about a week later than otherwise scheduled. The JV is also reported to be facing supply-chain issues.