Production suspended as auto industry braces for Coronavirus (Covid-19) onslaught

MANILA: As the whole of Luzon goes into enhanced community quarantine and the country in a state of calamity to deal with COVID-19, we look at the course of action taken by automakers globally to slow or even stop the spread of the contagion.

Toyota Motor Corporation

Toyota and its luxury arm Lexus has called off all current and forthcoming events. This includes the Lexus "Senses Electrified" show at Milan Design Week in Italy.

Visitors to the Toyota Motor Corporation Showroom in Nagoya will also see its operating hours reduced to 11 a.m. to 7 p.m. only.

On the other hand, trips and tours to the following have been suspended until further notice:

Toyota Kaikan Museum and Plant Tours (Aichi Prefecture)

March 2 (Monday) to April 5 (Sunday)

Toyota Automobile Museum (Aichi Prefecture)

February 29 (Saturday) to April 6 (Monday)

Toyota Commemorative Museum of Industry and Technology (Aichi Prefecture)

February 29 (Saturday) to April 6 (Monday)

Toyota Kuragaike Commemorative Hall (Aichi Prefecture)

March 2 (Monday) to March 30 (Monday)

MEGA WEB (Tokyo)

From March 2 (Monday)

Ford Motor Company

Starting today, Ford’s global workforce has been asked to work remotely except for those with critical roles that can’t be achieved away from Ford facilities. In Europe, the automaker has suspended vehicle and engine production of manufacturing sites in Cologne and Saarlouis, Germany, Craiova in Romania, and Valencia, Spain. “While the impact of coronavirus at our facilities so far has been limited thankfully, its effects on our employees, dealers, suppliers and customers, as well as European society as a whole, is unprecedented. Due to the dramatic impact this ongoing crisis is having on the European market and the supplier industry – together with the recent actions by countries to restrict all but essential travel and personal contact – we are temporarily halting production at our main continental Europe manufacturing sites,” said Stuart Rowley, president, Ford of Europe.

Automobili Lamborghini

Operations of the raging bull have halted in its one and only factory in Sant’Agata Bolognese until the 25^thof March.

“This measure is an act of social responsibility and high sensibility towards our people, in the extraordinary situation in which we find ourselves right now in Italy and which is also evolving abroad due to the worldwide spread of (the) Coronavirus. As we have done up until now, we continue to monitor the situation in order to react rapidly and with the right flexibility, in collaboration with our people and in order to restart with energy in the right moment,” said chairman and CEO Stefano Domenicali.

General Motors

GM personnel worldwide have also been asked to work remotely by CEO Mary Barra while systematic orderly suspension of manufacturing operations in North America have begun in order to deep clean facilities and continue to protect people. The suspension will last until at least March 30. In an office memo, Barra said, “If the nature of your work allows for it, we are asking all GM employees and contract workers to work remotely, beginning Monday, March 16. This policy applies globally, apart from our team in China, which has existing protocols in place. Please speak with your direct manager about what this means for you. These are important steps to lower the probability of spreading the coronavirus to coworkers, families and communities and to relieve the burden on public resources. It also helps conserve critical resources like cleaning crews, medical staff, and supplies so they can be deployed where they are most needed. We will be posting updates regularly. Government policies vary by country; please make sure you work closely with your leader to stay compliant in your area.”

Hyundai Motor Group

Hyundai suspended work in one South Korean factory since late February after an employee test positive for the Covid-19 virus.

The factory has been disinfected but no announcement has been made as to its reopening.

A Covid-19 Comprehensive Situation Room has been setup by Hyundai Motor Group at each affiliate in order to address cases that arise.

On March 3, 2020, Chung Eui-sun, executive vice chairman of Hyundai Motor Group, said, “Although temporary business disruptions will be inevitable due to the influence of Covid-19, we are fully prepared to overcome the crisis at hand as well as achieve early management stability in the future by establishing various contingency plans. The company will actively cooperate with the government-led response system, while also actively supporting the company to ensure the health and safety of its executives and employees by mobilizing all available resources.”

Ferrari

The brand with the prancing horse has suspended all production activities in its road car and even Formula 1 factories for two weeks in order to protect their employees and also help stop the spread of Covid-19. The company has also announced that Ferrari is "now experiencing the first serious supply chain issues, which no longer allow for continued production.” Non-manufacturing related work that can be done remotely will continue but production is on hold until March 27, 2020.

Group PSA

The French multinational manufacturer handling Peugeot, Citroën, DS, Opel, and Vauxhall has announced the closure of production sites in France, Spain, Germany, Poland, United Kingdom, and Slovakia until March 27. This is due to the close proximity of Covid-19 cases to the manufacturing plants, supply disruptions, and decline in the automobile market.

Volkswagen

Production in all European plants have now been suspended for at least two weeks. These are manufacturing sites in Wolfsburg, Emden, Dresden, Osnabrück, Zwickau, Bratislava (Slovakia), Pamplona (Spain) and Palmela (Portugal). It will not only halt production of the brand’s passenger cars but also of the Volkswagen Group Components, which are located in Brunswick, Chemnitz, Hanover, Kassel, Salzgitter and SITECH. The latter will affect production as well of the other brands under the group including Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, and Škoda. “The spread of coronavirus in Europe is increasingly having an adverse impact on the demand situation. At the same time, it is becoming increasingly difficult to supply our plants with outsourced parts. For this reason, we have decided to run production down in a coordinated way from the end of the late shift on Thursday. We are convinced that this will also be in the interests of our employees who are becoming increasingly concerned about the spread of corona,” said Ralf Brandstätter, chief operating officer of the Volkswagen passenger cars brand.

Rolls-Royce

The luxury brand is set to stop production at its Goodwood Estate in West Sussex, England for two weeks starting March 23, 2020. This will be followed immediately by an already-planned two-week Easter maintenance shutdown, effectively suspending operation for four straight weeks. Non-production employees will be on a rotational work-from-home program. “This action has not been taken lightly, but the health and well-being of our exceptional workforce is first and foremost in our minds.  We are a tight-knit community at the Home of Rolls‑Royce and I have no doubt that our resilience will shine through during this extraordinary time.” He continued, “As a deeply customer-focused company we are aware that this decision to pause our production will possibly cause some discomfort or inconvenience to a few of our esteemed patrons, for which we apologize while seeking their understanding at this difficult time,” said Torsten Müller-Ötvös chief executive officer of Rolls-Royce Motor Cars.

BMW

While they haven’t implemented total work stoppage due to Covid-19, the German automaker has effected three important tools: flexible BMW working time accounts, the option of working from home, and the latest company regulation on short-time work, which is each pay-scale employee will receive 93% of their usual sum. “In times of crisis, as we are experiencing right now, the General Works Council seeks to provide a clear sense of direction for associates. Our top priority is to protect their health, and safeguard their jobs and incomes,” said General Works Council chairman Manfred Schoch.