Leoni closes European plants, says COVID-19 impact is not foreseeable
Leoni said it would temporarily close plants, reduce the working hours of its staff and apply for state aid as a way to counter the fallout from the coronavirus.
Leoni’s business was struggling before the coronavirus crisis hit. But steps by major automakers to idle plants in Europe has led to a further decline in business for the supplier.
“Leoni AG expects considerable burdens on sales, earnings and liquidity. The level of this impact is not foreseeable at this stage,” the company said, Automotive News reads.
Leoni plans to pause production in Europe, North Africa and the Americas and to introduce short-time work in Germany, responding to plant closures by automakers, which are expected to last at least four weeks.
“Leoni will also take up the offer of the German government and plans to apply for financial aid. These funds will increase the financial flexibility of the company and are to be used at group level to ensure the continuation of business operations,” Leoni said.