Porsche has finally announced the closure of its factories as it responds to the rapid spread of the Covid-19 coronavirus. With that, the main plain in Zuffenhausen and its Leipzig facility will be closed for two weeks, beginning March 21, 2020. This is by order of the country’s works council.

Company boss Oliver Blume said: “With these measures, our company contributes to protect the workforce and reduce the spread of the coronavirus. The actual consequences are not yet predictable. It is therefore too early for forecasts. What is clear is that 2020 will be a very challenging year. We can only overcome the pandemic together and by taking rigorous measures.”

Another reason for the plant closure is the bottlenecks it is experiencing in global supply chains, which no longer allow orderly production. Besides suspending production, it also imposed a ban on business travel, and employees are told to work rom home. All meetings will take place virtually by way of video or conference calls, and it will continuously assess the situation.

At the same time, Porsche is preparing for a decline in demand and securing its financial strength with the decisions made. During its 2019 financial year, Porsche recorded new highs in sales, delivering a total of 280,800 cars globally. The numbers are impressive – sales revenue went up by 11% to 28.5 billion euros (RM135.5 billion), and the return on sales before special items was 15.4%, which is the highest in the automotive world.

While acknowledging that 2020 will be a challenging year, Porsche aims to continue to achieve its strategic goal of a return on sales of 15%.

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