BMW to shut down European factories over virus

This photo taken on June 8, 2019 shows people looking at BMW cars in the 18th Shenyang, International Automobile Industry Expo in Shenyang, in China's northeastern Liaoning province. (File/AFP)
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Updated 18 March 2020
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BMW to shut down European factories over virus

  • BMW warned that profits this year would be significantly lower as a result of the crisis
  • The German government has already simplified rules governing compensation for workers whose hours are slashed during the crisis

FRANKFURT: German carmaker BMW said Wednesday it would close European and South African factories accounting for half its output for a month, matching other car giants stricken by coronavirus containment measures.

It also warned that profits this year would be significantly lower as a result of the crisis.

“From today, we will shut down our European car factories and the Rosslyn factory in South Africa,” chief executive Oliver Zipse said, adding that the interruption is expected for now to last “until April 19.”

BMW’s factories around Europe — in Bavaria, elsewhere in Germany and further afield — combined with the South Africa plant accounted for half the 2.56 million cars the group built in 2019.

Around Europe, other manufacturers including Mercedes-Benz parent Daimler, Volkswagen, Ford, Fiat and Peugeot have also moved to shut factory doors through the coronavirus crisis.

“As for many goods, demand for cars will sink sharply” because of the virus and associated containment measures, BMW CEO Zipse said.

Workers at the Munich-based group benefit from “highly flexible and effective working-time tools” that can help cushion the impact, he added.

The German government has already simplified rules governing compensation for workers whose hours are slashed during the crisis.

BMW finance director Nicolas Peter said the group now expects pre-tax profits this year to be “significantly lower” than the 7.1 billion euros ($7.8 billion) reported in 2019.

“Measures related to the coronavirus will have a significant impact on the course of our business,” Peter said.


Venezuela’s acting president calls for oil industry reforms to attract more foreign investment

Updated 16 January 2026
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Venezuela’s acting president calls for oil industry reforms to attract more foreign investment

  • In her speech, Rodríguez said money earned from foreign oil sales would go into two funds: one dedicated to social services for workers and the public health care system, and another to economic development and infrastructure projects

CARACAS, Venezuela: Venezuela’s acting President Delcy Rodriguez used her first state of the union address on Thursday to promote oil industry reforms that would attract foreign investment, an objective aggressively pushed by the Trump administration since it toppled the country’s longtime leader less than two weeks ago.
Rodríguez, who has been under pressure from the US to fall in line with its vision for the oil-rich nation, said sales of Venezuelan oil would go to bolster crisis-stricken health services, economic development and other infrastructure projects.
While she sharply criticized the Trump administration and said there was a “stain on our relations,” the former vice president also outlined a distinct vision for the future between the two historic adversaries, straying from her predecessors, who have long railed against American intervention in Venezuela.
“Let us not be afraid of diplomacy” with the US, said Rodriguez, who must now navigate competing pressures from the Trump administration and a government loyal to former President Nicolás Maduro.
The speech, which was broadcast on a delay in Venezuela, came one day after Rodríguez said her government would continue releasing prisoners detained under Maduro in what she described as “a new political moment” since his ouster.
Trump on Thursday met at the White House with Venezuelan opposition leader María Corina Machado, whose political party is widely considered to have won 2024 elections rejected by Maduro. But in endorsing Rodríguez, who served as Maduro’s vice president since 2018, Trump has sidelined Machado.
In her speech, Rodríguez said money earned from foreign oil sales would go into two funds: one dedicated to social services for workers and the public health care system, and another to economic development and infrastructure projects.
Hospitals and other health care facilities across the country have long suffered. Patients are asked to provide practically all supplies needed for their care, from syringes to surgical screws. Economic turmoil, among other factors, has pushed millions of Venezuelans to migrate from the South American nation in recent years.
In moving forward, the acting president must walk a tightrope, balancing pressures from both Washington and top Venezuelan officials who hold sway over Venezuela’s security forces and strongly oppose the US Her recent public speeches reflect those tensions — vacillating from conciliatory calls for cooperation with the US, to defiant rants echoing the anti-imperialist rhetoric of her toppled predecessor.
American authorities have long railed against a government they describe as a “dictatorship,” while Venezuela’s government has built a powerful populist ethos sharply opposed to US meddling in its affairs.
For the foreseeable future, Rodríguez’s government has been effectively relieved of having to hold elections. That’s because when Venezuela’s high court granted Rodríguez presidential powers on an acting basis, it cited a provision of the constitution that allows the vice president to take over for a renewable period of 90 days.
Trump enlisted Rodríguez to help secure US control over Venezuela’s oil sales despite sanctioning her for human rights violations during his first term. To ensure she does his bidding, Trump threatened Rodríguez earlier this month with a “situation probably worse than Maduro.”
Maduro, who is being held in a Brooklyn jail, has pleaded not guilty to drug-trafficking charges.
Before Rodríguez’s speech on Thursday, a group of government supporters was allowed into the presidential palace, where they chanted for Maduro, who the government insists remains the country’s president. “Maduro, resist, the people are rising,” they shouted.