Hyundai Among Latest Automakers Shut Down by COVID-19

The automotive industry continued shutting down along with the rest of the U.S. as the COVID-19 pandemic spread Thursday, as the Detroit Three automakers began phased closings of their manufacturing facilities and some foreign-owned plants in the U.S. followed suit.

Hyundai Motor America suspended production at its Montgomery, AL, manufacturing plant after an employee tested positive Wednesday for COVID-19. Unlike other automakers that have given tentative dates for reopening their plants, Hyundai did not specify how long the Montgomery facility would be shuttered.

One of the automakers not planning to shut down indefinitely was Toyota, which said its automobile and parts-manufacturing plants in the U.S., Canada and Mexico would close Monday and Tuesday and resume production Wednesday, March 24. The shutdown will allow the plants to be thoroughly cleaned and give employees time to adjust family plans as schools close.

Nissan said it was closing its four U.S. plants through April 6 “to boost containment efforts where possible around the COVID-19 coronavirus," spokeswoman Lloryn Love-Carter said. “There are no confirmed cases of COVID-19 coronavirus at any Nissan facility. Areas deemed business-essential will operate with enhanced safety measures.”

Fiat Chrysler Automobiles indicated Wednesday it would suspend operations but, unlike Ford and General Motors, which said they would close their plants at least until March 30, did not specify when the shutdown would begin or how long it would last.

In Fremont, CA, the Alameda County Sheriff’s Office has ordered Tesla (left) to stop building cars.

Tesla factory (Getty)_1

“Tesla is not an essential business as defined in the Alameda County Health Order. Tesla can maintain minimum basic operations per the Alameda County Health Office,” the sheriff’s office tweeted.

Tesla had tried to get around an order imposed by local officials throughout the Bay Area to “shelter in place,” which requires the nearly 9 million residents not to go out except to fetch groceries or walk a dog. Tesla had contended its car-making operations were essential.

The shelter-in-place order defines minimum basic operations as payroll, security and preservation of inventory value, the Los Angeles Times reported. That list does not include car production, Alameda County spokesman Ray Kelly told the newspaper.

Tesla and Fremont police, which would enforce a ban on car production, have been unavailable for comment.

Kia Motors Mfg. Georgia said it would close its West Point, GA, plant Thursday and Friday not because of COVID-19 concerns but because of supply-chain issues, WTVM reported. The plant was to reopen Monday.

Mazda Toyota Mfg. says it is proceeding with construction of its $1.6 billion plant scheduled to open next year in Huntsville, AL. The factory eventually will employ 4,000 people.

“At this time there has been no identified impact to plant construction timelines or start of production identified in relation to the global occurrence of COVID-19,” the joint venture says in a statement to AL.com.

Volkswagen’s Chattanooga, TN, plant closed for one day Monday to sanitize and deep-clean the factory and give employees time to make child-care arrangements while Tennessee schools are shut.

The Subaru of Indiana plant in Lafayette, IN, temporarily shut down one engine line March 11 after an employee learned of having had contact with a person with COVID-19. The automaker says no employees are known to have tested positive for the virus, but those with flu-like symptoms are required to stay home.

BMW Spartanburg SC

Mercedes-Benz halted overtime in one part of its SUV plant in Vance, AL, and moved to a 6-hour shift at another because of a shortage of parts made in Europe, says Michael Gobel, president and CEO of Mercedes-Benz U.S. International.

Parent Daimler said Tuesday it was stopping production in Europe for at least two weeks because of the COVID-19 pandemic.

Holding out Thursday against a shutdown was BMW USA, which says it will continue operating its Spartanburg, SC, assembly plant (above). But, the automaker adds, “We recognize that we are in a dynamic situation and we are prepared to adjust quickly based on the daily analysis of the current environment.”

– with Joseph Szczesny