Volkswagen Furloughs 1,500 Workers at Tennessee Assembly Plant

By Ben Foldy

Volkswagen AG is furloughing around 1,500 production workers from its assembly plant in Chattanooga, Tenn., as it stops production because of the new coronavirus pandemic, the company said Thursday.

The German automaker will stop paying its production workers on April 11. Employees will be eligible for unemployment benefits and still receive their first quarter and March bonuses, with the company covering the cost of workers' health care benefits, the company said.

VW joins other foreign auto makers, including Honda Motor Co., Nissan Motor Co. and BMW AG, in together furloughing tens of thousands of U.S. workers this week. Each has stopped North American production of new cars as measures taken to stop the virus have forced plants to close and kept buyers away from dealers' lots.

Write to Ben Foldy at ben.foldy@wsj.com

(END) Dow Jones Newswires

April 09, 2020 17:37 ET (21:37 GMT)

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