Subaru of Indiana Automotive is joining the growing ranks of automakers putting hourly plant employees on furlough due to the COVID-19 outbreak.
The Japanese automaker’s only North America factory was initially idled on March 23. The shutdown was later extended until April 6 and again until April 20.
The company said the one-week furlough will begin Monday.
“While Subaru of Indiana Automotive was pleased to provide full pay for three weeks, next week will be unpaid for our hourly associates,” a plant spokesman said via email. “The situation was no longer sustainable while production remains suspended amid health concerns, declining market demand and supply chain issues.”
Plant employees, including temporary production employees with at least 90 days of service, are receiving full pay through April 10.
Subaru said health insurance and all other benefits will be retained. Hourly employees will qualify for unemployment benefits beginning on April 13.
The Lafayette, Ind., plant employs around 6,000 people,with around 5,300 hourly production workers, the spokesman said. The majority of salaried employees continue to work remotely.
Subaru builds the Impreza compact sedan and hatchback, the Legacy midsize sedan, the Outback midsize crossover and the Ascent three-row crossover in Indiana.
In Japan, Subaru Corp. suspended main assembly operations at its Gumma factory as well as at an engine and transmission plant on Thursday. The factories will reopen May 11, after an originally scheduled break for Japan’s Golden Week holiday.
Subaru’s Indiana plant is “still planning to return on April 20,” the spokesman said. “However, we continue to monitor the situation and will make additional changes if needed.”
