Martinrea International Inc. Chairman Rob Wildeboer said automakers could look into moving one of their two annually scheduled assembly-plant shutdowns forward as a way to slow the spread of the coronavirus.
Automakers typically idle assembly plants for weeks during the summer and winter for retooling.
“I would think that if I’m an OEM, I would say I’ve got a July shutdown anyway, so let’s think of doing that,” Wildeboer said. “I don’t know if they’re having that discussion, but it would not be an unwise discussion. We’ve got the inventory in place, so why don’t we do this industry-wide? I have not heard anyone say that, but don’t forget that we do this twice a year. We do it every July, and we do it every Christmas.”
Automakers, suppliers and labor are scrambling to adjust in the wake of the global coronavirus pandemic. Plants are closing in Europe, now the epicenter of the crisis, while unions in the United States and Canada have called on automakers to stop assembly for a minimum of two weeks.
Kristin Dziczek, vice-president of industry, labor and economics at the Center for Automotive Research in Ann Arbor, Mich., said automakers and unions could agree to amend the timing of scheduled shutdowns in the midst of this “historic and extremely unprecedented” event.
But it might not be as easy as it sounds.
“Shutdowns historically have been for when they’re retooling for new models, and the tooling to retool is probably not there,” she said. “We also do retooling on a more rolling basis these days. Model launches are happening all the time and not just when you come back from the July shutdown.”
Wildeboer said that while he was unaware of such discussions taking place, it could prove to be a way for the industry to “weather the storm.” He said that regardless of what happens, he is confident Martinrea, Canada’s third-largest supplier by annual sales to automakers, will be able to adjust.
“We’ve got a strong balance sheet,” he said. “We’re one of the strongest companies in the industry with good numbers. I think that’s also true for Linamar [Corp.], and Magna [International Inc.] would say the same thing.”
Magna and Linamar are Canada’s largest and second-largest suppliers by annual sales to automakers, respectively.
