By Jessica Sier 
 

Daimler AG will suspend most of its European production as well as some administrative work this week, as coronavirus spreads and further disrupts global supply chains, the company said on Tuesday.

The German car manufacturer said the suspension applies to its car, van and commercial-vehicle plants in Europe and will stay in place for two weeks initially.

"Connected to this is an assessment of global supply chains, which currently cannot be maintained to their full extent," said the Mercedes owner in a statement.

"At the same time, this will help the company to prepare for a period of temporarily lower demand and to protect its financial strength."

The company said it cannot adequately assess the economic impact of the temporary closures yet.

Daimler is the latest global auto manufacturer to suspend production this week. Volkswagen AG, Renault SE, Peugeot SE, Fiat Chrysler Automobiles NV, and Nissan have all closed plants in a bid to protect workers from the spread of coronavirus and in response to government policies.

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

(END) Dow Jones Newswires

March 17, 2020 12:38 ET (16:38 GMT)