Autoeuropa stops production over lack of parts

Portugal’s largest car plant VW Autoeuropa will begin a two-week stoppage from September 1 that could last for an indefinite period because of a lack of parts from a supplier in Slovenia.

According to the news service ECO, which consulted economists about the effect of the stoppage, they said it would be difficult to tell what the implications would be for the factory located in Palmela outside Lisbon.
“Autoeuropa is one of the most important companies in the Portuguese exports sector since it not only represents itself but also a value chain that is linked to it involving lots of companies that supply it with goods and services”, said João Duque, economist and president of Lisbon’s Higher Institute of Management and Economy (ISEG).
This is not the first time this year that there has been a stoppage at Autoeuropa. In March a lack of parts forced a two-day stoppage when the assembly line producing the SUVs T-Roc, currently the only model produced at the plant, ground to a halt.
The factory currently employs around 5,000 employees and represents around 6% of Portugal’s exports and 70% of its vehicle production in Portugal.