By Jessica Sier

Volkswagen AG will suspend vehicle production in Russia for two weeks as the coronavirus pandemic causes supply shortages throughout Europe, VW Group Rus said Tuesday.

The automaker's facilities in Kaluga as well as manufacturing by a contractor in Nizhny Novgorod will halt from March 30 to April 10, the company said.

"For the time being, we can provide stable supply of cars and spare parts to our dealers and customers," the Volkswagen subsidiary said in a statement.

The suspension will qualify as downtime and personnel will be paid according to Russian legislation and local company regulations, the company said.

The plant suspension comes a week after parent company Volkswagen Group suspended production in its plants across Europe for two weeks due to the spread of the coronavirus pandemic.

Vehicle manufacturers all over the world have halted production to protect staff and respond to a slump in demand and supply-chain shortages.

Write to Jessica Sier at jessica.sier@wsj.com

(END) Dow Jones Newswires

March 24, 2020 09:49 ET (13:49 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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