Bmw will stop production at three German factories due to a supply shortage

Article by Christian Andrei, on August 27, 2010

Because of the volcanic ash cloud over Europe, production at three BMW AG factories in Germany will be temporarily halted due to a supply shortage of interior and electronic parts.

These parts are typically delivered by air. The world's largest maker of luxury cars has ordered production to stop at its Dingolfing plant, which makes the 5- and 7-series vehicles, according to Mathias Schmidt, a BMW spokesman. 

Production has also been stopped at the Munich plant, which produces the 3 series; and at the Regensburg facility, which makes the 1 series and Z4 models.

BMW hopes to resume production for the three plants on April 23. About 7,000 vehicles won't be produced according to their schedule because of the temporary shutdown. 

The International Air Transport Association said that the flight ban, which was announced on April 14 with the eruption of the Eyjafjallajokull volcano, led to the cancellation of 81,000 flights.

Carriers stand to lose up to $300 million a day in lost revenue. The industry group predicts that with planes out of position and airlines focusing on repatriating stranded passengers, full timetables could be restored in as long as six days.

If European airspace remains closed, Daimler AG could soon face isolated logistic and supply disruptions, according to Ute von Vellberg, a spokeswoman for Daimler.

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