Alabama Mercedes plant temporarily shuts down due to supply chain disruption in Mexico
The Mercedes-Benz automotive manufacturing plant in Tuscaloosa County is suspending production due to a delay in receiving component parts from plants in Mexico.
The news was first reported by Bloomberg News, which procured an internal company memo on the topic.
The delay is expected to last around one week, and plant employees are being asked to either take vacation days or file a temporary unemployment claim.
An estimated 22,000 employees work at the facility and its dedicated in-state suppliers, per comments made to WBRC by Donny Jones, an official at the local chamber of commerce.
The plant reopened in late April after a five week closure caused by coronavirus precautions.
According to Bloomberg’s reporting, Mercedes plans to make up the lost production from June 29 through July 1, which had previously been scheduled to be a normal pause in operations.
Mexican workers are currently under strict coronavirus precautions that prevent the relevant plants from operating.
Bloomberg quotes the internal Mercedes memo as saying, “Due to respective country-specific regulations and their impact on international supplier sites, we expect a temporary interruption.”
The Mexican government is maintaining that operations can resume next week if proper health protocols are put into place.
“When you’re working one week and off the next, it does make things difficult for these workers. But hopefully, stability will come,” added Jones.