Plants Running, But Automakers Face COVID-19 Fallout

The COVID-19 pandemic continues to hobble automakers as they scramble to find workers, parts and buyers amid continuing concerns about public health.

“The surge in COVID-19 cases across the country is negatively impacting consumers and dealers,” Cox Automotive analysts say in a new report.

“Almost half of the shoppers delaying their purchase described this as a ‘scary’ time to buy a vehicle. For those delaying service, almost half say it is because they are just not driving as much as they used to,” Cox says. “Anxiety is ratcheting up again for consumers and dealers.”

Meanwhile, General Motors, Fiat Chrysler and Ford all report absenteeism is running higher, prompting the companies to search for laid-off employees who can be hired temporarily to fill in for workers missing due to the virus.

UAW spokesman Brian Rothenberg says when car plants reopened in May after a two-month shutdown triggered by the rapid spread of COVID-19, the automakers agreed to relax their penalties for absenteeism. “You don’t want people coming to work if they’re sick,” he says.

The higher-than-normal absenteeism does not mean more union members are sick, Rothenberg adds. But the pandemic has created other problems that have led workers to not show up for their regular shifts, he says.

In some cases, employees have self-quarantined because they might have met someone with COVID-19 outside the plant. In other cases, they cannot find child care or are a caregiver to an elderly parent or other relative, who are at greater risk from the virus.

GM temporarily cut the third shift employing 1,250 workers at an assembly plant in Wentzville, MO, in response to concerns about COVID-19. Cases in Missouri have increased in recent weeks.

“We believe, in the short term, a two-shift operating plan will allow us to operate as efficiently as possible and accommodate team members who are not reporting to work due to concerns about COVID-19 in the community,” GM spokesman David Barnas says in an e-mail.

“People on our team should not be concerned about coming to work. GM Wentzville is following multilayered safety protocols that are working very well to keep people safe by reducing the possibility that COVID-19 can enter the plant and preventing any spread within the plant,” Barnas says.

FCA also acknowledges absenteeism has increased.

“Overall absenteeism in some locations has been slightly higher than before the pandemic,” FCA spokeswoman Jodi Tinson says in an email.

Ford Dearborn Truck Plant mask

“Our employees also have been able to request leaves of absence, which are considered on a case-by-case basis. Through this unprecedented situation, our manufacturing teams have been able to successfully manage how our workforce is utilized, which includes the use of supplemental employees, to keep our plants running safely,” Tinson says, adding FCA overall has been pleased with the restart of production.

Ford spokeswoman Kelli Felker says in an email: “Our plants are running as scheduled (above). As I believe you are aware, when we returned to work in our plants we hired additional temporary workers, expecting increased absenteeism.”

Meanwhile, COVID-19 also is spreading in Mexico, a vital source of components for automakers operating across North America and where state governments have ordered social distancing in manufacturing plants to curb the spread of the virus.

Ford, for example, confirms it could soon face a shortage of engines made in Mexico due to restrictions imposed to help curtail COVID-19.

“Due to COVID-19, the State of Chihuahua in Mexico has limited employee attendance to 50%, a region in which we have several suppliers,” Kumar Galhotra, Ford president-Americas and International Markets Group, says in a statement.

“With our U.S. plants running at 100%, that is not sustainable…we are continuing to work with government officials on ways to safely and constructively resume remaining production.”

In Michigan, the center of the auto industry in North America, Gov. Gretchen Whitmer is warning she again could shut down the state and its auto plants if residents don’t follow rules requiring the use of face masks anytime they are likely to come into contact with others when they are outside their home.