Ford Motor Company has decided that it will be temporarily halting vehicle and engine production in select factories around the globe. The factories that will be temporarily shut down are the plants in South Africa, India, Thailand, and Vietnam. The move to shut down these production hubs is in response to the growing impact of the Coronavirus in these areas and across the globe. The exact shutdown period is still unknown but it could last for several weeks or more.
The health and safety of our employees, dealers, customers, partners, and communities is our highest priority.
He continues by stating that “ We are continuing to act in real-time and taking added safety measures by temporarily halting production at our manufacturing sites in the international markets.” With the Blue Oval facing losses due to suspended production, it has found a way to get some money in. Ford has found a way to generate cash by drawing down $15.4 billion from two credit lines and suspending its dividend. The company has also dropped its 2020 financial forecast and has reallocated the funds to deal with the effect of the Coronavirus.
Ford has already suspended production of its vehicles and engines in other countries as well. It has already halted production in several sites in continental Europe. It has also decided to stop production in its London based factory and even in its welsh facility. With a near-global temporary shutdown affecting all manufactures the car industry will need some time to recover from the pandemic. The COVID-19 pandemic has caused bottlenecks all across the globe with countries entering quarantine and isolating themselves from other countries. While the move is to ensure public health and safety it does put a strain on the automotive industry.
What does this mean for the Philippines?
Ford Philippines primarily sources its vehicles from Thailand. If the country were to come out of enhanced community quarantine the Blue Oval brand locally could face some supply issues. But with most car dealerships being shut down during the duration of the quarantine it will be a while before parts availability becomes harder.
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