News: Auto Industry Shifts Gears Facing Coronavirus Pandemic

Plants Close; Tesla, GM, Ford, FCA Work on Needed Medical Equipment

Auto manufacturing plants shuttered all around the world and dealerships shifted to online sales, but soon the auto giants sounded more like patriots responding to a call to arms. Although the sales hit due to the shutdowns and public sheltering in place will definitely show up on the balance sheet this year, Tesla, GM, Ford and FCA all initiated campaigns to bolster healthcare equipment supplies needed to respond to the pandemic.

Tesla, after initial scoffing from CEO Elon Musk about the seriousness of the virus and a reluctance to follow a regional directive to shut down its Fremont plant that builds all four of the companies’ models, switched gears. The plant was emptied of all but the essential workforce and Musk bought more than 1,200 surplus ventilators from China and delivered them to California officials. Musk said Tesla’s Chinese division, China’s Customs Authority and Los Angeles International Airport customs helped expedite the process.

Tesla also donated 50,000 face masks to the University of Washington School of Medicine.

GM and Ford offered their services to the Trump administration earlier in the pandemic and received a greenlight and offer of red tape-cutting assistance.

GM CEO Mary Barra said her company is working with Ventec Life Systems to set up production of ventilators and other respiratory care products to fight the pandemic. In 48 hours, GM said it was able to identify more than 95 percent of the parts needed to produce ventilators from its supply chain. It plans to begin delivering ventilators in quantity by April 6.

Ford and FCA Pledge New Production

Ford is working with 3M and GE to redesign and simplify respirators and plans to make 100,000 face shields a week using off-the-shelf parts. “We actually have four big efforts,” Ford executive chairman Bill Ford Jr. told NBC’s Today Show. In addition to producing face shields and 3D printing N95 masks in-house, the company is working to produce ventilators and air-purifying respirators. “We’re going as fast as we can. Nobody’s talked about the financial implications because this is a national emergency, we’ll sort all of that out later.” Ford’s using its existing facilities and working with the UAW to bring back workers for the project.

FCA has pledged to manufacturer and donate more than one million protective face masks a month to relieve anticipated shortages at hospitals around the country. Production capacity is being installed this week and production will start in the coming weeks, according to FCA. The face masks will be donated to police, EMTs, firefighters, hospital workers and health care clinics. The company said it was looking at further actions it might take in the fight against the coronavirus.

Shades of the effort during wartime, the auto industry (among other industries) is rising to the challenge that the country is facing.