German automaker, BMW, has announced plans to close its plants in Europe and South Africa for one month, until 19th April 2020. The move seeks to curb spread of the COVID-19, and also prevent a situation of oversupply as global vehicle sales decline.
This comes as a big setback to the carmaker, seeing that the two factories in context account for half of its output.
Furthermore, BMW finance director, Nicolas Peter, says the company now expects pre-tax profits this year to be way lower than the $7.8 billion reported in 2019.
Other automakers who have temporarily shut down plants in Europe due to the virus outbreak include Toyota, Mercedes-Benz, Ford, Nissan, Volkswagen, Fiat Chrysler, Peugeot and Renault.