From Airbus to VW: transport makers start to feel pain

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The impact of the coronavirus outbreak on global travel is already well known.

Airports are going quiet and airlines bleeding cash as air travel comes to a halt.

But now the pain is being felt well beyond service providers.

Anyone who makes any kind of transport is in trouble too.

On Tuesday (March 17) European aerospace giant Airbus said it was suspending production at French and Spanish plants.

Reuters sources say it's signaled it will need government aid if the crisis lasts several months.

A day earlier U.S. rival Boeing confirmed it's talking to the White House about help for itself, and the whole sector.

By mid-afternoon Airbus shares were down over 10%, while Boeing opened with big losses in U.S. trade.

Carmakers are in trouble too.

Volkswagen Group, the world's biggest, says it's suspending production at factories across Europe.

The company's powerful works council says it's not possible for workers to maintain a safe distance from each other.

That affects group brands from Audi to Lamborghini, besides the namesake VW marquee.

Though the shutdown doesn't yet cover Volkswagen plants in Mexico, Brazil, and the U.S.

It's a similar story over at rival Renault.

The French firm says its Spanish factories will go quiet as long as a state of emergency is in place in the country.

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