By Associated Press
DETROIT — Ford, Fiat Chrysler, Honda and Toyota took steps Thursday to restart North American factories that have been closed to protect workers from the coronavirus.
The plants would reopen in early or mid-April, restoring the largest source of cash for automakers that generally book revenue when they ship vehicles to dealerships.
Auto companies, like other businesses, are trying to manage their way through the coronavirus crisis, which has forced factories to close amid employee concerns that they could catch the virus while working close to others at factory work stations.
Ford /zigman2/quotes/208911460/composite F +6.14% said it wants to reopen five North American assembly plants, starting with one in Mexico on April 6 and continuing with four in the U.S. on April 14. The move was immediately met with skepticism by the United Auto Workers union, which represents 56,000 Ford factory workers.
“The UAW continues to review with great caution and concern decisions being made about restarting workplaces, especially at advanced dates,” union President Rory Gamble said in a statement.
Honda /zigman2/quotes/207173990/composite HMC -0.26% wants to reopen U.S. and Canadian factories on April 7, a week later than originally planned, while Toyota /zigman2/quotes/200537742/composite TM -0.44% plans to restart North American plants on April 20. Fiat Chrysler /zigman2/quotes/204248628/composite FCAU +0.51% intends to reopen U.S. and Canadian factories April 14 depending on state restrictions and plant readiness. General Motors /zigman2/quotes/205226835/composite GM +0.31% says it hasn’t decided yet when factories would restart. Most automakers said they would monitor the virus and adjust decisions if needed.
The factory decisions contrast with Italy, which on Thursday expanded a nationwide lockdown to include most heavy industry. Auto plants in Italy, which leads the world in virus deaths, already had been closed voluntarily.
The automakers’ moves in the U.S. come as new auto sales are expected to fall dramatically for the month of March. Edmunds.com expects March sales to fall nearly 36% from a year earlier.
Ford, in a release before the markets opened Thursday, said it’s aiming to reopen its factory in Hermosillo, Mexico, followed by its Dearborn, Michigan, truck plant, Kentucky truck plant in Louisville, the Ohio Assembly Plant near Cleveland, and the Transit van line at the Kansas City plant. The company also wants to reopen some parts-making plants on the same day, including four in Michigan, which is among the states hardest hit by the virus.
The Dearborn, Michigan, automaker says it will introduce additional safety measures to protect workers, but said it would give details later. Ford wants to reopen five North American assembly plants in April that were closed due to the threat of coronavirus.
All three Detroit automakers suspended production at U.S. factories a week ago under pressure from the United Auto Workers union, which had concerns about worker safety.
The Ford decision comes as the number of people infected by the virus spikes in Michigan. On Wednesday the state reported at least 2,294 infections and that the number of deaths nearly doubled from 24 to 43.
Two Detroit-area hospital systems said they are caring for more than 1,000 COVID-19 patients at 13 hospitals. At Beaumont Health and Henry Ford Health System, operating rooms were being converted into intensive care units and clinics had been turned into rooms for patients needing other medical care.
President Donald Trump said Wednesday that he is hoping the United States will be reopened by Easter as he weighs how to relax nationwide social-distancing guidelines to put some workers back on the job during the coronavirus outbreak.
Dr. Amesh Adalja, an infectious disease specialist and senior scholar at the Center for Health Security at Johns Hopkins, said by April 14, experts will have a better idea what the trajectory is for new coronavirus cases and whether factories can be run with appropriate social distancing. It’s important, he said, to find was to operate factories safely. “I would say we have to think about what the path forward is going to be,” he said.