Tesla has earned no shortage of criticism for being the only American manufacturer yet to suspend production as a result of the coronavirus pandemic. Rather than enact a full-blown shutdown, the California-based automaker opted to reduce its active workforce to just 2,500 employees — about a quarter of its total strength.
Six counties in the San Francisco Bay Area have issued a “shelter-in-place order” aimed at curtailing the spread of the novel coronavirus. Tesla’s Fremont facility is located in Alameda County — one of the municipalities telling residents to stay in their homes and close all nonessential businesses. Noticing that the factory had failed to comply with the notice, the Alameda County Sheriff’s Office tweeted out that Tesla was “not an essential business as defined in the Alameda County Health Order.”
But we’re not even sure what the company is legally obligated to do.
As we attempt to wean ourselves off endless discussions the new coronavirus, we’ve noticed there’s not exactly a glut of alternative news out there. Trade shows are being delayed, factories are being idled, and the whole world seems to be in standby mode as we attempt to stall the spread of COVID-19 following its migration out of China.
Regional quarantines in Asia were already doing a number on supply chains, and it wasn’t long before manufacturers around the world began idling production to further slow the virus’s spread. By the beginning of March, it was becoming quite clear that auto sales would suffer significant impacts as people spent the next several weeks isolated in their own homes. Now, the push is on to assess just how much this whole ordeal will impact an OEM’s bottom line.
In what is perhaps the shape of things to come here in North America, Fiat Chrysler Automobiles has decided to temporarily close several Italian factories in response to the coronavirus outbreak. Closures will be enacted at Pomigliano d’Arco, Melfi, Atessa and Cassino — with each factory stalled for several days between Wednesday and Saturday.
This comes after FCA took steps to limit the number of people passing through the doors of its Italian offices and factories. Late last month, the automaker issued a letter to suppliers and prospective visitors explaining that it would refuse anyone who recently visited Asia or any of the Italian municipalities initially affected by the virus outbreak. It then set up sanitation sites to encourage employee hand washing while staff attempted to sterilize their respective workplaces — a valiant effort that was probably doomed from the start.
With South Korea, Italy and Iran now reporting growing coronavirus outbreaks, it looks like this is going to be one of these long-haul illnesses that sends everyone to the store to stock on up on milk and bread. As you might have guessed, automakers have continued issuing warnings as the virus’ range continues to expand. On Wednesday, Toyota announced that its Japanese plans will undoubtedly be impacted by parts shortages over the next few weeks as Chinese suppliers remain dormant.
The worst of the outbreak is still located in Wuhan, where the virus is spreading out toward China’s coastal cities. Reliable figures for the number of people affected are difficult to come by. The Communist Party of China (CPC) and World Health Organization (WPO) both claim China had this one in the bag, with new cases always reported as “slowing” — an assertion you would be forgiven for doubting. COVID-19 seems anything but under control. This week, the Centers for Disease Control and Prevention told U.S. citizens to prepare for the worst as the stock market stumbled over fears of a global pandemic.
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