Ford again delays auto plant restarts

Market: Metals
31/03/20

Major US automaker Ford has delayed indefinitely its plans to restart production at some of its North American auto plants.

The announcement marks the second delay by Ford to restart its North American operations after shutting them on 19 March due to the spread of the coronavirus pandemic. Last week Ford said it would restart limited operations at a Mexican plant on 6 April, followed by restarts at some US plants on 14 April.

The company said the move was done to protect its workers. The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) union applauded Ford's move. Multiple UAW members who worked for automakers in the US have died due to the coronavirus.

The move has fueled expectations from steel market participants that Fiat-Chrysler Automobiles (FCA) and General Motors (GM) would likely follow.

FCA announced last week that it would extend shutdowns of its Canada and US plants to 14 April, and that its Mexican facilities would be subject to a separate announcement. A GM spokesman said in an email that shutdowns will extend past the original date of 30 March and will restart when it is safe to do so.

Toyota extended the shutdown for its North American operations through 19 April, with production expected to restart the following day.

The auto shutdowns have forced original equipment manufacturers (OEMs) like Magna International to close their manufacturing plants, and steel makers like AK Steel, ArcelorMittal and US Steel to idle US-based flat rolled mills last week.

By Rye Druzin

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