Toyota and BMW preparing for production suspension due to COVID-19; Secondary aluminium demand on further hard-hit

The fright for the secondary aluminium to be hard hit is amounting as automotive giants like Toyota and BMW have decided to suspend their European production sites until further notice, in an attempt to reduce the risk of spreading COVID-19.

As the secondary aluminium alloys DIN226 is widely used in Europe for the manufacture of diesel-engine cars, production cutbacks will weaken demand for the material, according to some market participants.

Toyota will close the plants in the United Kingdom, the Czech Republic, France, Turkey, Poland over this week, as announced by the Japanese automaker itself in a statement on Wednesday, March 18.

Toyota said it took the decision based on the government restrictions of people's movements designed to stop the spread of the virus, supply chain disruptions, and falling sales. Showrooms are shut in countries with strict population lockdowns; however, service centres remain open.

Toyota said that it would continue supplying car parts to ensure relentless servicing. It also said it would keep on staff at factories for preparing for the launch of new models, for example in Valenciennes France, where the new Yaris would start production later this year.

"Processes and projects deemed essential to a smooth re-start and to the future activity of the plants, such as new vehicle projects, will be maintained with necessary staff,” Toyota said.

BMW is also reportedly preparing to suspend production at its plants in Europe, Rosslyn, and South Africa, with effect from the end of this week until April 19, in response to weak market demand and as an attempt to help reduce the risk of spreading the coronavirus.

“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,” CEO Oliver Zipse said in a statement on Wednesday.

He also said that the automaker would close dealerships as well in Europe as demand for new cars currently stands frail.

BMW’s Rolls-Royce and Mini brands will also stop production at their UK manufacturing sites. The former said that it would suspend production at its plant in Goodwood, England, for the next two weeks with effect from Monday. The latter will shut its three UK plants on Monday until April 17.