- Fiat Chrysler says majority of its European factories will remain closed until March 27th.
- Further decision will be based on how COVID-19 crisis unravels in the next 2 months.
- FCA forms an alliance with Ford, GM, and UAW to combat the fast spread of Coroanvirus.
In its announcement on Sunday, Fiat Chrysler Automobiles (BIT:FCA) said that it plans on suspending production at most of its factories located in Europe. The production halt, it added, will begin from Monday and is planned till March 27th. Further decision regarding operations will be taken on the basis of how the Coronavirus emergency unravels in the next two weeks.
The Italian-American car manufacturer had previously announced last week that it wishes to intensify measures directed at minimizing the spread of the flu-like virus in Italy. Owing to rapidly increasing cases of Coronavirus in Italy, the government has currently ordered a nationwide quarantine.
FCA’s Production Houses In Poland, Serbia, And Italy To Take A Hit
Fiat also highlighted in its announcement that its production houses in Poland, Serbia, and Italy will primarily face a temporary shutdown. The automaker didn’t divulge any further information about the number of its plants (23 in total) that are to remain operational. Fiat’s spokesman didn’t respond immediately to the request for comment.
According to Fiat Chrysler:
“The group is working with its supply base and business partners to be ready to enable our manufacturing operations to deliver previously planned total levels of production despite the suspension when market demand returns.”
Apart from European factories, Fiat Chrysler is currently also facing a slowdown in the United States that is also reporting a fast spread of COVID-19. Production in China, however, is slowly returning to normal as authorities report the peak phase of the virus to have faded away.
In the automobile industry, Fiat Chrysler is so far the only manufacturer that has reported one employee in the United States to have been tested positive for Coronavirus. Previously, the company had also revealed one of its employees in the Canadian factory to have refused to work as he feared that one of his colleagues has been infected with the virus.
FCA, Ford Motor, General Motors, And United Auto Workers Form An Alliance
Fiat Chrysler joined hands with Ford Motor, General Motors, and United Auto Workers on Sunday to form an alliance that will work committedly towards minimizing the transmission of COVID-19 among its workers.
The Detroit auto manufacturers had also declared its new policy circling work-from-home last week to protect its salaried employees against the health hazard in North America.
At the time of writing, Fiat Chrysler is trading at around £6.61 per share that marks an around 45% decline in 2020 so far. FCA currently has a market cap of just over £10 billion.