Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

General Motors, Ford and Fiat Chrysler to temporarily close all US factories due to the coronavirus

General Motors, Ford and Fiat Chrysler to temporarily close all US factories due to the coronavirus

The Big Three automakers plan to close all U.S. auto factories as the coronavirus sweeps across the country. Ford said it would temporarily close its factories in North America after Thursday evening shifts.

Detroit’s Big Three automakers plan to temporarily close all U.S. factories as the coronavirus sweeps across the country.

The companies bowed to pressure from union leaders and employees who called for protection from the pandemic that’s spread to more than 212,000 people in nearly every country across the globe.

Ford said it plans to close its factories in the U.S., Canada and Mexico after Thursday evening and through March 30. The company said it would work closely with the United Auto Workers union in the coming weeks to restart plants and explore additional protocols and procedures to help prevent the spread of the virus.

“We’re continuing to work closely with union leaders, especially the United Auto Workers, to find ways to help keep our workforce healthy and safe -even as we look at solutions for continuing to provide the vehicles customers really want and need,” said Kumar Galhotra, Ford’s president of North America.

General Motors said it’s closing all North American factories at least until March 30 and will evaluate the situation on a weekly basis after that.

Fiat Chrysler said it will cease operations at its plants across North America “progressively from today through the end of March.” The company said it will reevaluate the situation at the end of the hiatus and will work closely with the UAW in the meantime to facilitate safe working conditions, including shift timings and enhanced cleaning protocols.

All together, the closures would affect 25 final-assembly factories and 150,000 union workers, according to the UAW and each automaker. General Motors has 11 factories, followed by Ford’s eight factories and Fiat Chrysler’s six.

“UAW members, their families and our communities will benefit from today’s announcement with the certainty that we are doing all that we can to protect our health and safety during this pandemic,” said UAW President Rory Gamble. “This will give us time to review best practices and to prevent the spread of this disease.”

Earlier Wednesday, Ford temporarily closed its operations at a Michigan-based assembly plant after an employee tested positive for COVID-19, spokesman Daniel Barbossa said in an email. It wasn’t immediately made clear when or if the factory would reopen.

The halt in production could create an immediate cash crunch for the automakers as demand for cars declines amid the COVID-19 outbreak.

RBC Capital Markets adjusted its forecast for auto stocks and said that fallout from the coronavirus could send global auto production down 16% in 2020, fueled partially by an expected 20% decline in U.S. sales.

“The greater challenge is that once the country gets past the worst of the pandemic, automakers will need to be prepared to get back online quickly to capitalize on the wave of deferred consumer demand,” said Jessica Caldwell, Edmunds’ executive director of industry analysis.

On Tuesday, the UAW said it had reached a deal with Ford, Fiat Chrysler and General Motors that would partially shut down facilities in the U.S.

The actions were a compromise between the companies and union after the UAW’s Gamble on Sunday urged the automakers to cease production for two weeks due to the spread of the virus.

Honda North America announced on Wednesday that it will be closing four U.S.-based plants starting March 23 due to an anticipated decline in market demand. In a statement, Honda said it would halt production for six days with plans to return by the end of the month.

The coronavirus has now infected more than 212,000 people across the globe and has killed at least 8,000 people, according to Johns Hopkins University data. In the U.S., it has infected more than 6,400 and has killed at least 114.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×