April 2, 2020 / 4:37 AM / 2 months ago

Volkswagen extends Mexico production halt as coronavirus bites

FILE PHOTO: An employee leaves the Volkswagen (VW) plant as the company will temporarily close its factories in Mexico amid growing worries over the spread of the coronavirus disease (COVID-19), in Puebla, Mexico March 29, 2020. REUTERS/Imelda Medina

MEXICO CITY (Reuters) - German automaker Volkswagen said on Wednesday it would extend until April 30 a suspension of activities at two production plants in central Mexico after the government declared a health emergency because of coronavirus.

Volkswagen (VOWG_p.DE) is among manufacturers worldwide who are responding to a fall in demand, as well as supply chain challenges following measures taken to rein in the pandemic.

In a statement the company said the halt was extended from April 12 to comply with government orders for a suspension of all non-essential activities.

Volkswagen said it would continue to pay employees during the suspension. Mexico reported 37 deaths, up from 29 a day earlier, and 1,378 infections, up from 1,215, because of the virus.

Reporting by Sharay Angulo; Writing by Stefanie Eschenbacher; Editing by Clarence Fernandez

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