Global auto supplier Marelli said Monday it will suspend operations in many of its North American plants due to the COVID-19 crisis.
The decision comes as nearly all of its customers’ North American auto assembly plants have closed.
“Marelli leadership has made the difficult decision to temporarily suspend manufacturing operations in many of its North American plants,” the statement said. “Closures will happen in a staggered fashion, with the overall duration to be evaluated every few days. In some cases, operations may continue on a reduced scale to align with customer needs.”
Marelli is a leading global supplier to the automotive sector with locations in 24 countries. The company’s products include automotive lighting, powertrain and interior experience, including electronics. Marelli was formed last year when Fiat Chrysler Automobiles sold its parts unit Magnetti Marelli to Japan’s Calsonic Kansei in a deal valued at $6.5 billion.
“The company is ready to make operational changes as needed to accommodate both the health and well-being of its employees while meeting customer requirements,” Marelli’s statement said.
Prior to the decision, the supplier made several operational changes, such as implementing virtual meetings, social distancing and working from home where possible.
Many suppliers are making the same decision as the global industry idles production in the wake of the spread of the virus. Major suppliers that have cut production include Germany’s Bosch and Continental. Others are expected to follow.
Dana Inc. and Lear Corp. are operating but monitoring the COVID-19 situation continuously.
It is unknown when Marelli will reopen operations. The company had no further comment beyond its statement. Several states, including Michigan and Ohio, have ordered all nonessential workers to stay home to stem the spread of the virus.
