Vw, Ford slowing production in Europe in the coming weeks

Article by Christian Andrei, on March 25, 2011

As parts suppliers in Japan are still striving to restart factories, it’s likely that Ford Motor Co., Volkswagen AG, and other carmakers will follow moves by General Motors Co.'s Opel unit and PSA/Peugeot Citroen SA to slow down production in Europe in the coming weeks.

BMW AG, Daimler AG, and VW have already been struggling with scant parts supplies as they operate plants at high capacity levels to meet record demand.

VW spokesman Christoph Adomat said his company will maintain production through this week. The Cologne, Germany-based Ford of Europe can't rule out production disruptions, said spokesman Adrian Schmitz.

He added that Ford is in contacts with suppliers and a components shortage from Japan has so far not disrupted production. Meanwhile, Volvo Car Corp., the Swedish carmaker owned by China's Zhejiang Geely Holding Group Co., has secured its production through next week, spokesman Stefan Elfstrom said to Autonews.

He said that Volvo, which gets about 10 percent of parts from Japan, has about 30 Japanese suppliers, including seven based in the most damaged areas.

Elfstrom said that Volvo is getting some positive signals that suppliers slowly are getting back electricity and water and that infrastructure is improving even as the situation is still “very unstable.”

Topics: vw, ford

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