Ford and General Motors rejected the UAW’s call to close all plants for two weeks, but they probably should have taken that advice as both companies have now decided to cease production until March 30th.
While the recent agreement between the automakers and union only called for a “rotating partial shutdown of facilities,” Ford and GM have now announced far more extreme measures.
In GM’s case, they’re beginning an “orderly suspension of manufacturing operations in North America due to market conditions.” As part of this effort, plants will suspend operations in cadence to ensure closures occur in a safe and orderly fashion.
Also Read: Ford, FCA And GM To Implement Rotating Shutdowns As Honda To Close Every Plant In North America
Production will be halted until at least March 30th and plans will be reevaluated on a week-to-week basis after that. During the downtime, the facilities will be deep cleaned.
GM CEO Mary Barra said “GM and the UAW have always put the health and safety of the people entering GM plants first, and we have agreed to a systematic, orderly suspension of production to aid in fighting COVID-19 / coronavirus.” She added, “We have been taking extraordinary precautions around the world to keep our plant environments safe and recent developments in North America make it clear this is the right thing to do now.”
At Ford, the company will cease production in North America following the conclusion of Thursday’s evening shift. The plants will remain closed until March 30th and the company will work with the UAW to increase employee safety.
As part of this effort, plants will be cleaned and sanitized during their downtime. Ford and the UAW will also explore ways to “maximize social distancing among plant workers – both during work hours and at shift change, when large numbers of people typically gather at entry and exit points.” They’ll also work together to maximize cleaning times between shifts.
Update: FCA has also announced plans to close their plants in North America. Their shutdown begins today and will last through March.
The closures come hot on the heels of coronavirus cases in workers from Ford, FCA and GM. Yesterday, the UAW confirmed an employee from GM’s Warren Tech Center tested positive for the virus.
Less than 24 hours later, FCA shutdown the Sterling Heights Assembly Plant “out of an abundance of caution” after an employee tested positive for CONVID-19. Ford’s Michigan Assembly Plant also closed after an employee was found to have the coronavirus.
Of course, Detroit’s Big Three are far from alone in this crisis as Hyundai announced an employee at Hyundai Motor Manufacturing Alabama has tested positive. Production was suspended at the plant this morning and the facility is now being cleaned.
What about outside North America?
Outside of the United States, the shutdowns continue. Daimler noted the “worsening situation” has caused them to “suspend the majority of its production in Europe, as well as work in selected administrative departments, for an initial period of two weeks.”
Likewise, BMW Chairman Oliver Zipse revealed “We began to shut down our European and Rosslyn automotive plants, which will close by the end of the week. The interruption of production for the mentioned plants is currently planned to run until April 19th.”
Rolls-Royce also announced they will cease production starting March 23rd. The suspension will then be followed by a pre-planned two-week maintenance shutdown which will occur over Easter.
