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Jonas Fröberg: Volvo car stop, send Sweden out of the depression

stop the Cars and factories? for three main reasons. And all of the world's supply chain, which is broken after the new coronavirus was first, beating out o

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Jonas Fröberg: Volvo car stop, send Sweden out of the depression

stop the Cars and factories?

for three main reasons. And all of the world's supply chain, which is broken after the new coronavirus was first, beating out of the suppliers in China and then in Europe. Secondly, play care staff to enter, and secondly, a dramatic fall in demand, particularly in southern Europe, People in many countries simply do not go out and buy the cars. However, even in Sweden, the demand is down dramatically because of the abysmal uncertainty of the economic future.

during The past five days, the decision has been made on the European and the North american auto industry in the us is between two weeks and one month. Volvo Cars ' factories in Sweden and are, in fact, the last of the plants that fall, after the Volvofolket been working around the clock to get the components from its global supply chain. Now, there are components to the internet. Then there is an end.

This is an extremely serious matter. On the surface, it may at first look innocent, like, No notice to and an end in ten days ' time. The problem is, the nearest to the monumental uncertainties ahead: the Consequences are difficult to foresee. The Volvo group is Sweden's largest employer with over 25,000 employees. The company is especially vulnerable to interruption because they are totally dependent on their cash flow to pay operating expenses, in particular, on the development side. Add to that, there is a major question mark moving forward.

the Answer is which sends ice-cold breath at the back of the neck, on the world's markets: No one knows. The output should be in the top ten) working days. Beyond is extremely uncertain on a number of levels: are they really Going to get up and running in the heat of the supply chain as quickly as after a couple of weeks? There are a lot of great questions. In China, where a large proportion of the components come from, goes to the plants while in the 80 to 90 percent of the speed, but that can change quickly if the coronavirus strike in the second wave.

in The worse is going on in the south of Europe: Spain, Italy, and France, are in effect closed. The global supply chain goes all the way. Find bromstillverkaren Brembo, which supplies braking of the Volvo plants in Sweden, the Brembo factory is located in the region of Lombardy in northern Italy, and this week it is closed.

from Volvo's factory are just-in-time production, with minutpassning of the chairs, which run at the factory. These layers are, in order to keep the costs down, looking at the boats and the trucks. Made a shift knob, or a printed circuit board on a production line at Torslanda, all.

It does not seem likely that the production in Italy and will be up and running in the near future, with the escalation of the death of a coronavirus.

It is now very tough weeks in front of the Volvo cars purchasing department. In a broader sense, an even greater challenge to the economy is not going to fall into a depression.

Read more: the world Economy is being torn apart right in front of our eyes.

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