Coronavirus: Nissan and Ford suspend car production as pandemic causes sudden drop in demand

Car makers shut down as demand dries up and virus disrupts supply chains

Nissan has suspended car production at the UK's biggest car plant in Sunderland after the coronavirus outbreak caused a "sudden drop in demand" and disruption to supply chains.

Ford also said it is temporarily stopping production in Europe from Thursday in response to the Covid-19 outbreak.

Nissan employs around 7,000 people in Sunderland, and supports thousands of more jobs at its suppliers.

The company said in a statement on Tuesday: "Vehicle production has been suspended today in Nissan Sunderland Plant.

"Further measures are currently under study as we assess supply chain disruption and the sudden drop in market demand caused by the Covid-19 emergency.”

Labour MP for Washington and Sunderland West, Sharon Hodgson, said the news was "extremely concerning" and urged the government to urgently take steps to support businesses and individuals.

US car maker Ford said it would halt vehicle and engine production at its plants in continental Europe from Thursday for a period expected to be "a number of weeks".

“While the impact of coronavirus at our facilities so far has been limited thankfully, its effects on our employees, dealers, suppliers and customers, as well as European society as a whole, is unprecedented,” said Stuart Rowley, president, Ford of Europe.

“Due to the dramatic impact this ongoing crisis is having on the European market and the supplier industry – together with the recent actions by countries to restrict all but essential travel and personal contact – we are temporarily halting production at our main continental Europe manufacturing sites.”

Vauxhall's Ellesmere Port factory in Cheshire is also due to close on Tuesday until March 27 as part of plans to deal with the outbreak.

Car manufacturers face a series of problems including falling demand in China, Brexit, the shift away from fossil fuels and now the coronavirus.

News that an Nissan - seen as an important UK employer - is experiencing disruption, will add to pressure on the government to spend large sums to combat Covid-19's economic impact.

It comes after the UK airlines industry asked for a multi-billion pound bail-out, warning that the reduction in travel threatened its viability.

The hospitality industry trade body warned that pubs, restaurants, bars and hotels could be forced to cut hundreds of thousands of jobs without urgent government support.