Original equipment manufacturer (OEM) Magna International is beginning to suspend operations at its production facilities in Europe and North America because of the growing coronavirus pandemic, a move that will lower metal demand and crimp scrap generation.
The company tied the move to recent decisions by the world's automakers to curtail or shut down vehicle production in Europe and North America amid the growing threat of the coronavirus outbreak.
Magna did not give a restart date for its operations, and said that it would evaluate the situation on a week-to-week basis.
America's three largest US-based auto companies — Ford, General Motors and Fiat-Chrysler Automobile — said they would be shut down their North American plants through the end of the month.
Nissan's North American operations will close from 20 March through 6 April, while Honda said it will shut its 12 North American plants on 23 March for six days.
Toyota would close its North American facilities on 23 and 24 March to conduct deep cleanings of the sites.
In Europe, Seat, Nissan, Volkswagen, Ford, Renault and others have reduced output or plan to scale back, lowering demand from one of the biggest metals consuming sectors.
Other auto suppliers have also curtailed production. Goodyear Tire and Rubber suspended its operations in the Americas located in Brazil, Canada, Chile, Colombia, Mexico and the US through 3 April, it said on 18 March.
