U.S. auto giants to stop domestic production for now
https://www.washingtonpost.com/business/2020/03/18/automakers-shutdown-coronavirus/
text only:
March 18, 2020 at 2:58 p.m. EDT
Ford Motor Co. and General Motors will halt production at all North American factories for at least two weeks to slow the spread of the coronavirus.
Reuters and CNBC separately reported that Chrysler, the third company that makes up the Big Three U.S. car manufacturers, would also cease production.
A Chrysler spokeswoman did not immediately respond to a request for comment. An earlier statement from the United Auto Workers said the company had agreed to a "rotating partial shutdown" that would allow for extensive deep cleaning of facilities between shifts and had staggered shifts to minimize workers' contact with one another.
How has the coronavirus outbreak disrupted your life? Share your life experience with The Post.
GM executives said shutting down production is "the right thing to do" to protect workers' health.
"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," GM chairman and CEO Mary Barra said in a statement. "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."
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Coronavirus is shutting down American life as states try to battle outbreak
Ford described its production halt as a temporary measure to keep workers safe.
"UAW and Ford leaders will work together on how to best structure plant restart plans ― along with health and safety procedures," Ford said in a statement.
The virus prevention measures from the Big Three automakers came after extensive negotiation with the union, which had pushed to temporarily shut down factories, as Ford and GM have now agreed to do. Company leadership initially balked at halting production, instead asking for 48 hours to come up with an alternative plan.
"We spent hours tonight in talks with the leadership of the Big 3, demanding that they do the right thing for our members," the UAW said in a statement. "All three companies have agreed to new measures that will increase adherence to CDC recommendations on social distancing in the workplace."
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All three companies are struggling to prevent the virus from spreading throughout the workforce while also taking steps to maintain the long-term stability of their businesses. All three companies have seen their stock prices plummet by roughly 50 percent on fears that the pandemic could lead to a recession.
A lot is at stake for the U.S. economy and for workers across the country. The automotive manufacturing industry employed about a million people in the United States as of February 2019, according to the Bureau of Labor Statistics.
Federal Reserve launches special fund to keep credit flowing in U.S. economy during coronavirus scare
White House officials have been working with congressional Republicans on an emergency stimulus package that could add up to $1 trillion, with an estimated $50 billion for the aviation industry. A Treasury Department document outlining the parameters of a possible stimulus plan did not specifically mention automakers, although it did call for $150 billion for "secured lending or loan guarantees to assist other critical sectors of the U.S. economy experiencing severe financial distress due to the COVID-19 outbreak."
Rachel Siegel and Alice Crites contributed to this report.
-- via my feedly newsfeed
https://www.washingtonpost.com/business/2020/03/18/automakers-shutdown-coronavirus/
text only:
March 18, 2020 at 2:58 p.m. EDT
Ford Motor Co. and General Motors will halt production at all North American factories for at least two weeks to slow the spread of the coronavirus.
Reuters and CNBC separately reported that Chrysler, the third company that makes up the Big Three U.S. car manufacturers, would also cease production.
A Chrysler spokeswoman did not immediately respond to a request for comment. An earlier statement from the United Auto Workers said the company had agreed to a "rotating partial shutdown" that would allow for extensive deep cleaning of facilities between shifts and had staggered shifts to minimize workers' contact with one another.
How has the coronavirus outbreak disrupted your life? Share your life experience with The Post.
GM executives said shutting down production is "the right thing to do" to protect workers' health.
"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," GM chairman and CEO Mary Barra said in a statement. "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."
AD
ADVERTISING
Coronavirus is shutting down American life as states try to battle outbreak
Ford described its production halt as a temporary measure to keep workers safe.
"UAW and Ford leaders will work together on how to best structure plant restart plans ― along with health and safety procedures," Ford said in a statement.
The virus prevention measures from the Big Three automakers came after extensive negotiation with the union, which had pushed to temporarily shut down factories, as Ford and GM have now agreed to do. Company leadership initially balked at halting production, instead asking for 48 hours to come up with an alternative plan.
"We spent hours tonight in talks with the leadership of the Big 3, demanding that they do the right thing for our members," the UAW said in a statement. "All three companies have agreed to new measures that will increase adherence to CDC recommendations on social distancing in the workplace."
AD
All three companies are struggling to prevent the virus from spreading throughout the workforce while also taking steps to maintain the long-term stability of their businesses. All three companies have seen their stock prices plummet by roughly 50 percent on fears that the pandemic could lead to a recession.
A lot is at stake for the U.S. economy and for workers across the country. The automotive manufacturing industry employed about a million people in the United States as of February 2019, according to the Bureau of Labor Statistics.
Federal Reserve launches special fund to keep credit flowing in U.S. economy during coronavirus scare
White House officials have been working with congressional Republicans on an emergency stimulus package that could add up to $1 trillion, with an estimated $50 billion for the aviation industry. A Treasury Department document outlining the parameters of a possible stimulus plan did not specifically mention automakers, although it did call for $150 billion for "secured lending or loan guarantees to assist other critical sectors of the U.S. economy experiencing severe financial distress due to the COVID-19 outbreak."
Rachel Siegel and Alice Crites contributed to this report.
-- via my feedly newsfeed
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