As Detroit Automakers Target A May 18 Re-Open Date, Confusion Still Looms

Detroit’s major auto manufacturers have set their eyes on a date for re-opening: May 18.

GM, Ford and Fiat are all looking to mid-May to resume production at their U.S. factors after settling on a date with the United Auto Workers and Michigan’s governor, Gretchen Whitmer, according to the Wall Street Journal. 

Last week, the UAW had raised concerns about re-opening factories early next month, stating that it wouldn’t provide enough time for the companies to develop safety protocols necessary to prevent the risk of coronavirus infection. The union remains in talks with the companies on such safety protocols and the two parties have “made progress” in recent days. 

A Ford spokeswoman said: “We are continuing to assess public health conditions, government guidelines and supplier readiness to determine when the time is right to resume production.”

The auto companies will be providing protective gear for workers when they return and will look to implement social distancing protocols in their plants. 

Governor Gretchen Whitmer extended a stay-at-home order through May 15 last week. There’s no word on whether she plans on extending the order and/or whether or not auto makers could be considered “essential” exempt businesses from any additional order.

The auto makers would use the May 18 date to re-start production at all U.S. factories, not just in Detroit, despite some states’ orders lifting sooner than May 15.

Many of the auto suppliers necessary for the automakers to restart production also remain in a state of limbo. They are unsure whether or not they will be able to legally run their assembly lines or recall workers by the time the automakers will need them too. 

Detroit has been closed since about March 20, when positive coronavirus cases began to pop up at production facilities and the rest of the country shut down. Dealerships have continued to sell vehicles using sharply reduced prices and heavy discounts. The plant shutdowns, however, have still choked off revenue due to the fact that most automakers recognize revenue after cars leave the plant, on their way to the dealership. 

Foreign automakers are looking to restart production sooner, with Toyota seeking to go back to factory work on May 4 and Honda targeting May 8. 

Over the last 6 weeks, we have been reporting on how the global auto market has been at a standstill since the world has been on coronavirus lockdown. For instance, just yesterday, we reported that auto sales and registrations in Italy were down by an astounding 98% in April.