Detroit Three Update: GM, Ford to Cease Production, FCA's Actions Unclear

by Steph Willems

Published: March 18th, 2020

detroit three update gm ford to cease production fca s actions unclear

Ford Motor Company says it plans to idle all North American plants by end of day Thursday, keeping those facilities offline until the end of the month in an effort to cleanse them of coronavirus. General Motors is following suit, though Fiat Chrysler has yet to detail its near-future plan to protect workers and tailor production to reduced consumer demand.

The details come after the Detroit Three automakers agreed to a partial shutdown of U.S. production after advocacy from the United Auto Workers.

Ford said in a release that it plans to “thoroughly clean its facilities to protect its workforce and boost containment efforts for the COVID-19 coronavirus” after final shifts wrap up Thursday. The shutdown, spanning plants in Mexico to Canada, will end March 30th.

From Ford:

UAW and Ford leaders 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.

UAW President Rory Gamble called the move the “prudent thing to do.”

General Motors plans to similarly scrub things down during what it calls a “systematic orderly suspension of manufacturing operations in North America.” Company brass will determine which plants go dark first. A timeline was not offered, though GM says the production suspension will last until “at least” March 30th.

Striking an ominous tone for workers and bean counters alike, the automaker added, “Production status will be reevaluated week-to-week after that.”

As of publication time, FCA had not shown its cards, though there’s little chance the automaker’s plan won’t closely mirror actions taken by Ford and GM.

(Update: As expected, FCA says it will close plants one at a time between now and the end of the month. It will then reevaluate.)

[Image: Ford]

#DetroitThree #Fca #FiatChryslerAutomobiles #Ford #GeneralMotors #GM #Industry #Production

Steph Willems

More by Steph Willems

Comments

Join the conversation

2 of 27 comments

ToolGuy on Mar 19, 2020

Dear CFO of XYZ Motor Corporation, Can we agree that the annual budget/business plan/operating plan is not robust or resilient in adapting/responding to exogenous shocks? (e.g., tsunamis, recessions, pandemics) [And your 5-year strategic plan might be somewhat less than accurate.] Is there a better way? We know there is. Dear CEO of XYZ Motors, ask your CFO about this. It's time for a change.

Like Reply
Jeff S on Mar 19, 2020

@narcoossee--Maybe so but count me out of buying anything from Tesla. I wouldn't agree to their terms and therefore they would not sell me anything. I would not beg to buy any corporations product let someone else beg.

Like Reply

Recent Comments

Bd2 Lexus is just a higher trim package Toyota. ^^
Tassos ONLY consider CIvics or Corollas, in their segment. NO DAMNED Hyundais, Kias, Nissans or esp Mitsus. Not even a Pretend-BMW Mazda. They may look cute but they SUCK.I always recommend Corollas to friends of mine who are not auto enthusiasts, even tho I never owed one, and owned a Civic Hatch 5 speed 1992 for 25 years. MANY follow my advice and are VERY happy. ALmost all are women.friends who believe they are auto enthusiasts would not listen to me anyway, and would never buy a Toyota. They are damned fools, on both counts.
Tassos since Oct 2016 I drive a 2007 E320 Bluetec and since April 2017 also a 2008 E320 Bluetec.Now I am in my summer palace deep in the Eurozone until end October and drive the 2008.Changing the considerable oils (10 quarts synthetic) twice cost me 80 and 70 euros. Same changes in the US on the 2007 cost me $219 at the dealers and $120 at Firestone.Changing the air filter cost 30 Euros, with labor, and there are two such filters (engine and cabin), and changing the fuel filter only 50 euros, while in the US they asked for... $400. You can safely bet I declined and told them what to do with their gold-plated filter. And when I changed it in Europe, I looked at the old one and it was clean as a whistle.A set of Continentals tires, installed etc, 300 EurosI can't remember anything else for the 2008. For the 2007, a brand new set of manual rec'd tires at Discount Tire with free rotations for life used up the $500 allowance the dealer gave me when I bought it (tires only had 5000 miles left on them then)So, as you can see, I spent less than even if I owned a Lexus instead, and probably less than all these poor devils here that brag about their alleged low cost Datsun-Mitsus and Hyundai-Kias.And that's THETRUTHABOUTCARS. My Cars,
NJRide These are the Q1 Luxury division salesAudi 44,226Acura 30,373BMW 84,475Genesis 14,777Mercedes 66,000Lexus 78,471Infiniti 13,904Volvo 30,000*Tesla (maybe not luxury but relevant): 125,000?Lincoln 24,894Cadillac 35,451So Cadillac is now stuck as a second-tier player with names like Volvo. Even German 3rd wheel Audi is outselling them. Where to gain sales?Surprisingly a decline of Tesla could boost Cadillac EVs. Tesla sort of is now in the old Buick-Mercury upper middle of the market. If lets say the market stays the same, but another 15-20% leave Tesla I could see some going for a Caddy EV or hybrid, but is the division ready to meet them?In terms of the mainstream luxury brands, Lexus is probably a better benchmark than BMW. Lexus is basically doing a modern interpretation of what Cadillac/upscale Olds/Buick used to completely dominate. But Lexus' only downfall is the lack of emotion, something Cadillac at least used to be good at. The Escalade still has far more styling and brand ID than most of Lexus. So match Lexus' quality but out-do them on comfort and styling. Yes a lot of Lexus buyers may be Toyota or import loyal but there are a lot who are former GM buyers who would "come home" for a better product.In fact, that by and large is the Big 3's problem. In the 80s and 90s they would try to win back "import intenders" and this at least slowed the market share erosion. I feel like around 2000 they gave this up and resorted to a ton of gimmicks before the bankruptcies. So they have dropped from 66% to 37% of the market in a quarter century. Sure they have scaled down their presence and for the last 14 years preserved profit. But in the largest, most prosperous market in the world they are not leading. I mean who would think the Koreans could take almost 10% of the market? But they did because they built and structured products people wanted. (I also think the excess reliance on overseas assembly by the Big 3 hurts them vs more import brands building in US). But the domestics should really be at 60% of their home market and the fact that they are not speaks volumes. Cadillac should not be losing 2-1 to Lexus and BMW.
Tassos Not my favorite Eldorados. Too much cowbell (fins), the gauges look poor for such an expensive car, the interior has too many shiny bits but does not scream "flagship luxury", and the white on red leather or whatever is rather loud for this car, while it might work in a Corvette. But do not despair, a couple more years and the exterior designs (at least) will sober up, the cowbells will be more discreet and the long, low and wide 60s designs are not far away. If only the interiors would be fit for the price point, and especially a few acres of real wood that also looked real.