Kotagiri said there is “no written playbook” for the pandemic and understands production could be further delayed, but he is ready if that happens. What would worry him more would be restarting and then having to stop again.
“The most important thing is, how can we as an industry coordinate and minimize the start-stops?” he said.
“If someone comes and says, ‘It’s not May 4, it’s May 10.’ That’s OK. It’s easy to deal with,” said Kotagiri, who was promoted to president in January. “But if somebody comes and says to start on the 4th and we stop again on the 12th, that’s a bigger problem.”
Magna, which makes parts such as body structures, chassis and powertrain for customers including Ford and Volkswagen, has about 70 employees globally recovering from COVID-19 and has seen three in North America die from the virus.
Last month, Magna withdrew its financial outlook, citing the pandemic, but said its liquidity was strong. After increasing a revolving credit facility on Tuesday, Magna has $1 billion in cash and $3.7 billion in available credit lines.
As for the restart, Magna is planning heavily for it, including drawing up an almost 60-page “Smart Start Playbook” to help with the transition, talking about best practices, and details like disinfecting guidelines, the use of personal protective equipment like masks and face shields, as well as treating and tracing infected employees.
