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OEM Update: Coronavirus Production Adjustments

FCA Statement on Shift Pattern Changes at U.S. Manufacturing Facilities Related to COVID-19

March 17, 2020 , Auburn Hills, Mich. – Following several days of proactive discussions with our UAW partners focused on providing a safe environment for our employees, we have agreed that in addition to our extensive current protocols to protect our employees, FCA will implement a series of shift pattern and production changes across our manufacturing plants in the United States. These changes, which include rotating shifts to allow for greater separation of employees and further enhancing our new sanitation protocols, are focused on providing a safe environment and peace of mind to our employees at their place of work. Despite the continuing economic turmoil caused by the COVID-19 outbreak, FCA continues to work on fulfilling a strong North American order book from both fleet and dealer partners.

Following his visits today to multiple company facilities across southeast Michigan, FCA CEO Mike Manley commented: “I spent time today with a number of our employees in our assembly and stamping plants. I wanted to see for myself how we are implementing our new cleaning and workplace protocols, and be assured that we are putting their welfare first as we continue to support the effort to arrest the spread of this virus. Ultimately this will pass, and when it does, it is important to me that we can say we worked hard with our UAW partners to provide the safest work environment for our people.” 

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Statement By Honda Regarding Production Adjustments To North American Auto Plants

UPDATE: March 18, 2020: Honda today announced that it would adjust production at all of its automobile production plants in North America, including the U.S., Canada and Mexico, due to an anticipated decline in market demand related to the economic impact of the COVID-19 pandemic. 

Honda will suspend production for six days beginning March 23, with current plans to return to production on Tuesday, March 31. Honda transmission and engine plants in North America that serve Honda auto plants also will suspend production for the same time period. Honda will reduce production by approximately 40,000 vehicles during these six days.

As the market impact of the fast-changing COVID-19 situation evolves, Honda will continue to evaluate conditions and make additional adjustments as necessary. In undertaking this production adjustment, Honda is continuing to manage its business carefully through a measured approach to sales that aligns production with market demand.

During this time, Honda will continue full pay for all of its associates. Approximately 27,600 Honda associates in North America will be affected by this temporary suspension of production. In addition, Honda will utilize this time to continue deep cleaning of its production facilities and common areas to further protect associates upon their return to the plants.

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This production adjustment also will allow Honda associates to better prepare and adjust family plans in relation to regional directives to close schools to stop the spread of the COVID-19 virus. This will enable working parents to determine how best to manage the needs of children staying home from school and other required lifestyle adjustments.

The affected auto plants include:

Ohio:
Marysville Auto Plant
East Liberty Auto Plant
Performance Manufacturing Center

Indiana:
Honda Manufacturing of Indiana

Alabama:
Honda Manufacturing of Alabama

Canada:
Honda of Canada Mfg. – Plants 1 & 2

Mexico:
Honda de Mexico – Celaya Auto Plant

The affected powertrain plants include:

Honda Transmission Manufacturing of America (Ohio)
Honda of America Mfg. Anna Engine Plant (Ohio)
Honda Precision Parts of Georgia (Georgia)
Honda of Canada Mfg. Engine Plant (Canada)
Honda de Mexico – Celaya Transmission Plant (Mexico)

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Hyundai’s U.S. Actions In Response To Coronavirus (COVID-19)

UPDATE: March 18, 2020: The safety, health and well-being of Hyundai employees, customers, business partners and the communities where we do business is of the utmost importance during the current coronavirus (COVID-19) global pandemic. Hyundai has established a coronavirus (COVID-19) response team at all affiliated companies to monitor the situation, minimize the risks and prepare for all potential scenarios.

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The following is an update on the coronavirus (COVID-19) impact at Hyundai’s U.S. operations and the proactive and preventive measures each has taken. This information will be updated in real-time.

Hyundai Motor America

  • All employees are working from home except for a small group of employees in certain departments that support auto repair and auto supplies as essential business functions.
  • Suspended all travel outside of North America and all non-essential travel within North America.
  • Field employees who travel regularly are working from home and refraining from travel.
  • Reinstated the Hyundai Assurance Job Loss Protection program
    • Hyundai will make up to six months of payments for new owners who lose their jobs and have purchased or leased their vehicle between March 14 to April 30, 2020 through Hyundai Capital.
    • For select new purchases through April 30 financed by Hyundai Capital, Hyundai is deferring payments for 90 days at the customer’s request.
  • Provided employees with the CDC recommendations on preventative measures to reduce the spread of respiratory viruses, including coronavirus
  • Readily providing hand sanitizer and disinfecting wipes at headquarters and all of the regional offices
  • Increased the cleaning frequency of high-touch areas like door knobs/handles, elevator buttons, and counter tops
  • Restricting visitors at Hyundai facilities
  • Suspended training sessions at all Hyundai Training Centers
  • Expanded cleaning of Hyundai press fleet vehicles and no contact vehicle delivery and pick ups
  • Cancellation or postponement of company events and programs, including no audience at the global reveal of the all-new 2021 Elantra on March 17, cancellation of the 2020 Sonata Hybrid media drive program and upcoming dealer recognition trip, among others


Hyundai Motor Manufacturing Alabama (HMMA)

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  • Confirmed a case of COVID-19 among its workforce on March 18
    • The individual who tested positive is not currently on site at HMMA
    • HMMA has notified the Alabama Department of Public Health (ADPH) of this case
    • All team members have been informed of the situation
  • HMMA is suspending production in all areas, for all shifts, beginning on Wednesday, March 18, 2020
    • HMMA has already deployed additional sanitation measures across the entire facility and will now follow ADPH’s protocols for disinfecting the affected work area
    • HMMA will confer with ADPH and the CDC to determine if additional measures should be taken
  • Once HMMA’s environment, health, and safety team have determined that the affected area has been sufficiently sanitized and production is safe to resume, our team members will be informed
  • Provided employees with the CDC recommendations on preventative measures to reduce the spread of respiratory viruses, including coronavirus, and posted signage throughout the facility
  • Readily providing hand sanitizer and disinfecting wipes
  • Suspended public tours


Hyundai U.S. Dealerships

  • Regular communications with dealerships and provided the CDC’s recommendations for preventative measures businesses should take to keep their employees and customers safe
  • Additional cleaning of Hyundai vehicles in for service
  • Provided dealerships with a variety of financial assistance
  • Deferred floorplan interest, increased incentives and other accommodations for dealers who finance their floorplan with Hyundai Finance
  • Dealerships closely monitoring the situation in their local communities

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Ford Reduces North America Production To Help Keep Workforce Safe, Boosting Coronavirus Containment Efforts

  • Production at Ford’s U.S., Canadian and Mexican manufacturing facilities will be halted after Thursday evening’s shifts through March 30 to thoroughly clean and sanitize the company’s plants
  • UAW and Ford leaders will work together on how to best structure plant restart plans—along with health and safety procedures aimed at helping keep the workforce safe
  • Ford is taking additional production-related actions as the American government restricts travel and personal contact, affecting vehicle sales and component suppliers throughout the country. Pandemic conditions, national restrictions, supplier constraints and dealer stock requirements will be continually re-evaluated.

DEARBORN, Mich., March 18, 2020 – Following Thursday evening shifts, Ford is temporarily suspending production at its manufacturing sites in North America through March 30 to thoroughly clean its facilities to protect its workforce and boost containment efforts for the COVID-19 coronavirus.

“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. “In these unprecedented times, we’re exploring unique and creative solutions to support our workforce, customers, dealers, suppliers and communities.”

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UAW and Ford leaders will work together in the coming weeks on plant restart plans as well as exploring additional protocols and procedures for helping prevent the spread of the virus. Chief among them: finding 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 and maximizing cleaning times between shift changes.

“Today’s action is the prudent thing to do. By taking a shutdown and working through next steps, we protect UAW members, their families and the community,” said Rory Gamble, president of the UAW. “We have time to review best practices when the plants reopen, and we prevent the possible spread of this pandemic. We commend Ford for working with us and taking this bold step.”

Ford temporarily closed Michigan Assembly Plant (MAP) final assembly building this morning after an employee tested positive for the COVID-19 coronavirus and is thoroughly cleaning and disinfecting the building, as promised as part of the company’s coronavirus emergency response protocol. MAP will halt production through March 30.

In addition, the company will instruct people who have had direct contact with that infected employee to self-quarantine and get medical attention. Those who have had close contact to those who have had direct contact are asked watch for symptoms and seek medical attention if they feel unwell.

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The move to temporarily close plants follows Sunday’s news that Ford leaders are forming a Coronavirus Task Force along with UAW, General Motors Co. and Fiat Chrysler leaders to implement enhanced protections for manufacturing and warehouse employees at all three companies. Ford Executive Chairman Bill Ford and President and CEO Jim Hackett, UAW President Rory Gamble, GM Chairman and CEO Mary Barra, and FCA CEO Michael Manley are leading the task force. The three companies formed a similar task force in Canada.

“Together, we’ll continue finding solutions and best practices that help keep workers at our plants and parts distribution centers healthy and safe throughout our operations,” said Gary Johnson, chief manufacturing and labor affairs officer.

In addition, Ford vehicle manufacturing sites in Cologne and Saarlouis in Germany, together with the Craiova facility in Romania, will temporarily halt production starting Thursday. Ford’s Valencia assembly and engine facility in Spain already temporarily halted production from Monday, after three workers were confirmed with coronavirus over the past weekend.

On Monday, Ford asked all salaried employees – except those performing business critical roles that can’t be done off site – to work remotely until further notice.

“Especially in these challenging times, we must continue working together and putting people first,” Galhotra said.

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General Motors To Temporarily Suspend Production

UPDATE: March 18, 2020: Today, General Motors Co. confirmed it will begin a systematic orderly suspension of manufacturing operations in North America due to market conditions and to deep clean facilities and continue to protect people. The suspension will last until at least March 30. Production status will be reevaluated week-to-week after that.

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“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,” said GM Chairman and CEO Mary Barra. “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. I appreciate the teamwork of UAW President Rory Gamble, UAW Vice President Terry Dittes and local leadership as we take this unprecedented step.”

“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. We appreciate General Motors’ actions today and will continue to work with them on health and safety plans to be implemented when we resume production.”

To ensure that production stops in a safe and orderly fashion, plants will suspend operations in a cadence, with each facility receiving specific instructions from manufacturing leadership.

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