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Daimler to idle Alabama Mercedes assembly plant because of parts shortage

Published 05/15/2020, 02:46 PM
Updated 05/15/2020, 02:50 PM
© Reuters. FILE PHOTO: The spread of the coronavirus disease (COVID-19) in Germany
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(Reuters) - Daimler AG (DE:DAIGn) said on Friday it will idle its Mercedes-Benz sport utility vehicle assembly plant in Alabama next week because of a parts shortage.

The German automaker, which resumed production late last month at the Tuscaloosa plant after a halt because of the coronavirus pandemic, plans to make up the production during a scheduled off week this summer.

Bloomberg News reported the parts shortage was from Mexico, where auto suppliers have not yet resumed production. A person briefed on the matter confirmed to Reuters that a lack of parts from Mexico was the cause.

© Reuters. FILE PHOTO: The spread of the coronavirus disease (COVID-19) in Germany

Other automakers have told Reuters that if Mexico does not resume parts production next week they will be forced to again quickly idle many U.S. assembly plants.

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