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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.

VW pulls Lamborghini and Bentley from the Paris Motor Show

It's been slightly more than a year since the news that Volkswagen had intentionally cheated on diesel emissions testing broke. Since then, the company's reputation and image have suffered and it has struggled to regain its footing and composure. The automaker is shelling out billions in fines, so cost cutting is inevitable. Today, Reuters reports that Volkswagen subsidiaries Lamborghini and Bentley won't bring their elaborate displays to the Paris Motor Show next week. Auto shows can cost automakers millions of dollars, especially for supercar and luxury car brands that constantly try to compete and one-up with each other. Much of the money and fanfare goes to catering the media, and if an automaker has nothing new to reveal it can be difficult to justify the expense. The company told Reuters that it plans to attend smaller events that focus more on potential buyers. The Volkswagen group as a whole has shifted it's focus, both when it comes to products and auto shows like Paris. Next week, the automaker will be focusing on electric vehicles and electromobility. The company plans to reveal a new EV with 373 miles of range, eclipsing both the Tesla Model 3 and Chevy Bolt. Volkswagen has plans for 30 new electric vehicles by 2025. Lamborghini and Bentley aren't the only major automakers skipping Paris. Ford, Volvo, and Aston Martin have all decided to save money and focus their efforts elsewhere. Related Video:

Senators want civil, criminal actions against VW

With the Department of Justice just beginning its investigation into Volkswagen's emissions evading diesels, Senators Richard Blumenthal and Amy Klobuchar are pushing for the automaker to be prosecuted to the fullest extent of the law both civilly and criminally. In a letter to Attorney General Loretta Lynch, they press the agency to make its scrutiny "thorough but expeditious." The politicians allege that VW misled people while pumping huge amounts of pollution into the air. The Senators believe that all the information about VW's actions needs to make it to the public eye, and the DOJ must have a strong response to the automaker breaking the law. "Officials at Volkswagen should be granted no get out of jail free card, and the Department should accept no plea agreement with Volkswagen that does not ensure any and all information regarding criminal acts by high level officials is provided to the Department," they write. Senator Blumenthal is no stranger for championing changes in the auto industry as of late. He was an advocate for the General Motors Ignition Switch Compensation Fund and pushed for a similar organization for Takata airbag victims. He has also been a staunch supporter for greater automotive cyber security. Blumenthal, Klobuchar: Department of Justice Should Take Strong Civil and Criminal Actions Against Volkswagen for Any Violations Monday, September 28, 2015 Condemns Volkswagen's actions that misled hundreds of thousands of consumers and resulted in tens of thousands of tons of additional pollution emissions Calls for thorough but expeditious investigation (Washingtion, DC) – U.S. Senator Richard Blumenthal (D-CT) and U.S Senator Amy Klobuchar (D-MN) today urged the U.S. Department of Justice (DOJ) to take strong civil and criminal actions against Volkswagen for any violations following the German carmaker's actions that misled hundreds of thousands of American consumers and resulted in tens of thousands of tons of additional pollution emissions. In a letter to Attorney General Loretta Lynch, the senators called for a "thorough but expeditious" investigation. "Officials at Volkswagen should be granted no get out of jail free card, and the Department should accept no plea agreement with Volkswagen that does not ensure any and all information regarding criminal acts by high level officials is provided to the Department," wrote Blumenthal and Klobuchar. "The U.S.