Big Three Automakers Agree to Suspend Production in North America Due to Coronavirus

DEARBORN, MI—Following negotiations with the United Auto Workers Union, the big three automakers—Ford Motor Co., General Motors and Fiat-Chrysler Automobiles—have agreed to suspend production to protect their workforce and to prevent the spread of the Coronavirus.

The deals were announced on Wednesday by the three major automakers. Following Thursday evening shifts, Ford is temporarily suspending production at its manufacturing sites in North America to 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,” says 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.”

The UAW and Ford leaders state they 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,” says 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 its Michigan Assembly Plant final assembly building on Wednesday after an employee tested positive for the COVID-19 coronavirus. The company is thoroughly cleaning and disinfecting the building, as promised as part of the company’s coronavirus emergency response protocol. MAP will halt production until March 30.

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.

General Motors Co. stated it will begin a systematic orderly suspension of manufacturing operations in North America due to market conditions, 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.

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.

Fiat-Chrysler stated in an announcement that it agreed to cease production at its plants across North America, starting progressively from Wednesday through the end of March. While production is paused, the company will put actions into place to facilitate the steps agreed through the joint task-force set up between the UAW and the automakers.

“Through this period, which we will reevaluate at the end of this month, FCA will work to enhance its manufacturing operations to facilitate the changes agreed with the UAW including shift timings, structures and enhanced cleaning protocols,” the company states.

Commenting on the action, FCA CEO, Mike Manley says, “Working with the UAW, and having visited many of our plants yesterday, we need to ensure employees feel safe at work and that we are taking every step possible to protect them. We will continue to do what is right for our people through this period of uncertainty.”