WASHINGTON (Pakistan Point News / Sputnik - 19th March, 2020) The big three US automakers General Motors, Ford, and Fiat Chrysler announced in separate statements they are temporarily shutting down their plants in North America due to the damages the market has sustained from the novel coronavirus (COVID-19) pandemic and to deep clean facilities.
"Today, General Motors Co. (NYSE: GM) confirmed it will begin a systematic orderly suspension of manufacturing operations in North America due to market conditions, to deep clean facilities and continue to protect people," the company said in the release on Wednesday. "The suspension will last until at least March 30. Production status will be reevaluated week-to-week after that."
Ford said in its press release that it is temporarily halting manufacturing at its plants in North America through March 30 to clean and sanitize the company's factories in response to the novel coronavirus outbreak. Ford added that an employee at a plant in the state of Michigan tested positive for COVID-19 and employees who were in contact with that individual have been instructed to self-quarantine and seek medical attention.
Fiat Chrysler Automobiles in a separate press release said the company has agreed to temporarily shut down its plants in North America through March 31 to improve cleaning protocols and adjust its operations to the current market conditions.
Toyota and Honda have also decided to temporarily halt automobile production in their North American plants to cleanse their plants and due to the anticipated decline in market demand related to the disease outbreak.
Honda said it will reduce production by about 40,000 vehicles when it suspends operations between March 23-31, and about 27,600 employees will be affected by the furlough.
The Dow Jones Industrial Average, the broadest equities gauge on the New York Stock Exchange, closed down 6 percent at 19,899 on Wednesday, its first settlement under 20,000 since 2017. The Dow, which stood at 19,827.247 on Jan. 20, 2017, has now wiped out nearly all of its gains since Donald Trump came to office, depriving the president of a major talking point in his reelection year.
Wednesday's rout in stocks also came after US crude oil prices fell 24% on the year to an 18-year low of $20.38 a barrel. The crude market is facing a perfect storm of demand destruction caused by the coronavirus and higher output from Saudi Arabia and Russia amid an all-timed fight for market share between the two oil producing titans.