US automakers shut down some production

Spanish Market: Metals
18/03/20

Fiat-Chrysler Automobiles (FCA) shut down a truck plant in Michigan today and Honda became the first automaker in the US to issue an order for a full shutdown of its plants as the coronavirus pandemic continues to spread.

Honda will shut its North American plants for six days beginning 23 March.

FCA said its Sterling Heights plant in Michigan, which builds the Ram 1500 pickup truck, was shut down today in an effort to protect workers. It expects to release further information on restarting operations later today.

The move comes as FCA works to shift production in accordance to an agreement yesterday between FCA, Ford, and General Motors (GM) and the president of the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) union.

The agreement between automakers and the UAW called for rotating partial shutdowns of auto plants, though it did not specify how that would be implemented.

The UAW has reported multiple cases of union members working at auto facilities being infected by coronavirus, including at FCA and GM facilities.

Honda operates 12 North American plants. The US plants are located in Alabama, Georgia, Indiana and Ohio and have an annual production capacity of 1mn vehicles/yr and 3mn engines/yr, according to the company.

Ford announced yesterday that it was shutting down its European operations, following closures by other European automakers, and stoking concerns across the US auto supply chain of potential production cutbacks domestically that will impact demand for steel, aluminum and other products.

By Rye Druzin

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