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.
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.
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.
Navy Vet