Following in the Footsteps of Others
The COVID-19 outbreak is having serious impacts on companies across the globe. BMW has now joined the ever-growing number of motorcycle manufacturers who have announced a suspension of production. Not long ago KTM, Husqvarna, and GasGas suspended production as did Ducati and several other motorcycle-related companies. BMW announced on the 18th of March that it would shut down facilities across Europe and South Africa.
Production will be suspended until April 19. These production facilities also include Mini and Rolls Royce. The closures of these plants impact a total of 30,000 workers, according to RideApart. These closures will have a ripple effect throughout the company and its supply chains.
Several European dealers are also temporarily closing due to a drop in sales. This should come as no surprise. People aren’t likely to be going out and buying a motorcycle with the Coronavirus outbreak still in full swing. The CEO Oliver Zipse said the following in a statement: “We take our responsibility seriously, both when it comes to ensuring the protection and health of our employees and to achieving the best possible balance in terms of profitability.” I’ll keep an eye on the situation as it develops further.