New coronavirus outbreak causes 93% of U.S. auto production to go offline

Since March 16, nearly all u.S. and European automakers have announced production stoppages because of the global pandemic that has led to the new corona virus,media reported. Only four companies were initially released, and now the number has risen to 25. This set of data gives a glimpse of the grim situation of downtime.

New coronavirus outbreak causes 93% of U.S. auto production to go offline

Figures released by the Alliance for Automotive Innovation show that 93 per cent of US car production was offline as of March 26. These include Ford, General Motors and Fiat Chrysler Automobiles, as well as foreign carmakers such as Honda, Toyota and Volkswagen, which are made in the United States.

In addition, the alliance studied the impact of the shutdown on the entire North American continent. 80% of North American production is now out of production due to plant shutdowns in the United States, Canada and Mexico. According to the alliance, only two plants are still operating in the U.S., but it’s not clear which two are. Across North America, only 14 plants are still operating.

Unfortunately, these car companies do not seem to be able to reopen the production line as planned. Many companies have announced that they will continue to delay the restart, but some are now producing personal protective equipment to combat the outbreak. It is reported that every car manufacturer has promised to close the plant after the complete disinfection measures and thorough cleaning, of course, it wants its workers to be healthy.

To help suppliers, distributors and other affected businesses, the coalition called on the U.S. government to implement some measures. It requires the government to delay quarterly federal tax payments and provide tax credits to companies with more than 500 employees, which provide paid sick leave to workers. But what’s the biggest requirement? Delaythe implementation of the new measures proposed in NAFTA to replace the USMCA trade agreement.