U.S. auto companies during the epidemic: employees start working remotely, but factories are still operating

Fiat Chrysler (FCA), Ford, and General Motors began encouraging employees to "telework" last week to curb the spread of the new coronavirus. The policy currently applies mainly to office workers, with factory production staff still required to work at factories, including one where a worker tested positive for COVID-19.

Michigan is home to many automakers’ factories, and 12 suspected cases have been reported as of last weekend. "The virus has arrived at the doorstep of American auto companies." Some foreign media commented.

FCA: Cases appeared in U.S. factories

FCA was the first car company among the "Big Three" to make this decision because a worker at its transmission plant in Indiana had COVID-19 The test result was positive. FCA asked 14,000 employees in Detroit and its U.S. headquarters to work from home starting last Thursday.

Currently, the employee who tested positive for COVID-19 is receiving medical care, and employees who may have been in contact with him or her have been quarantined at home. For privacy reasons, FCA refused to disclose the employee's personal information to the outside world. Previously, FCA, Ford and General Motors introduced new customer agreements and related restrictions to limit the disclosure of personal information due to employee illness.

As the plant chooses to continue operations, FCA is disinfecting the worksite where the workers are working as well as the entire Kokomo, Indiana, plant. The factory currently has about 4,000 employees and output is still at normal levels, but now the factory is adjusting break times to avoid crowding and trying to increase the distance between employees.

In addition, there was also "commotion" at FCA's factories in Canada. Workers at a minivan factory in Ontario went on strike Thursday because they suspected an employee was infected. The employee self-isolated after possible contact with a virus carrier again. Currently, there are no confirmed cases in the factory and production resumed that afternoon. Plant worker representatives said: "We need to stay informed of their action plans and precautions to ensure the safety of our employees. Unfortunately, we cannot order any employer to close their doors."

Ford, GM : Major plants will not be closed

General Motors CEO Marry Barra sent a letter to employees around the world on Friday asking employees and contractors to work remotely as "work permits." work (although contract workers are told to seek further instructions from their employer). This measure does not apply to GM employees in China because the Chinese government has relevant measures in place.

At the same time, she said the company is adjusting work arrangements in production, product development, customer service and after-sales service departments to allow for additional cleaning work. Additionally, GM said it will provide paid leave to all salaried and hourly employees, including its unionized employees.

Similarly, Ford also began to encourage employees to work remotely starting this Monday, "except for those employees in business-critical positions who cannot leave Ford plants." At the same time, Ford postponed the Bronco? SUV model launch event, time to be notified later.

Although the car giants have shown a "considerate" attitude, at present, all companies have stated that they will not close major factories. Ford spokesman Mark Truby said: "While the current situation is quite unstable, I do not believe that any of Ford's major plants will be completely closed."

General Motors and FCA expressed the same attitude. GM CEO Mary Barra even said that she saw business opportunities in the pandemic. She wrote in a letter to employees, "Given the current decline in public transportation usage and the large number of flight cancellations, our customers are looking to us more than ever to ensure they have the vehicles, parts and components they need. and services."

General Motors CEO Mary Barra

In addition to the "Big Three" in Detroit, other auto giants have also introduced policies to encourage employees in the United States to work from home. .

Nissan requires all employees in the United States who are not in core business roles to work remotely from home starting this week. Mercedes-Benz USA said it is implementing a "temporary work from home" policy at its Atlanta headquarters. BMW has also begun instructing salaried employees (both salaried and hourly employees in the United States) to start working remotely.

Toyota, Honda, Volkswagen and other companies have also taken relevant measures.

The market will be deeply affected

Although GM’s CEO is optimistic about “seeing business opportunities in the epidemic”, analysts do not think so. Analysts at Morgan Stanley issued a report saying that the epidemic will cause U.S. auto sales to decline by 9% this year.

In fact, the market does lack confidence in the auto market. In a battering for U.S. stocks last week, shares of U.S. automakers were hit harder than other companies. Shares of General Motors, Ford and Tesla fell about 17% on Wednesday.

Analytical institutions believe that the industry has moved from a "supply disaster" to a "demand disaster". In the early stages of the epidemic, due to production interruptions by Chinese suppliers, automakers "in" the United States, such as FCA, General Motors, Toyota, Tesla, etc., chose to transport parts by air to avoid suspending production at U.S. factories and shouldered a huge burden. "Supply pressure"; now that the epidemic is spreading in the United States, it will cause consumers to postpone large purchases, causing a "demand shock."

Similarly, research firm LMC Automotive lowered its 2020 U.S. auto sales forecast by 300,000 units to 16.5 million units, which would be the lowest level for the U.S. auto industry since 2014. Meanwhile, LMC lowered its forecast for total international light vehicle sales in 2020 by 4%, or 3.5 million units, as "the COVID-19 outbreak creates critical uncertainty".

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.