Detroit's Big 3 Automakers Resume Production
In April, the auto industry reached its bottom as car registrations in Europe fell 76%, the strongest drop in demand recorded. This past month, however, European carmakers, such as Bayerische Motoren Werke Ag (OTC: BMWY), Volkswagen AG (OTC: VWAGY) and Daimler AG (OTC: DDAIF), were able to take advantage of loosened work restrictions and restart production.
As of Monday, U.S. automakers are now able to start production as well.
General Motors
General Motors Company (NYSE: GM) did more than fortify its balance sheet over the past decade. Besides developing carefully thought-out protocols while producing medical equipment during the pandemic and reopening its Asian plants, GM has a crisis playbook that will ensure stakeholder safety during its quick restoration of production, sales, and profits.
Overall, GM predicts it will be back to full production levels in about 4 weeks.
Ford Motor Company
Ford Motor Company (NYSE: F) resumed operations at 9 facilities across the U.S. with robust health and safety protocols. Its European plants restarted recently, with China leading the reboot over 2 weeks ago.
The pandemic cost Ford $2 billion during its first fiscal quarter, with the second-quarter loss is estimated to be far greater as the company already drew more than $15 billion from its credit line.
Fiat Chrysler Automobiles NV
Fiat Chrysler Automobiles (NYSE: FCAU) was amongst the worst hit automakers as it realized losses up to $1.8 billion.
Alongside the loss, FCAU will face antitrust regulators for a $50 billion merger with PSA Group (OTC: PEUGF), which would result in the creation of the world's fourth-biggest carmaker, surpassing Volkswagen as the market leader in Europe.
The Problem Remains
Monday was a huge day as 51 plants gradually resumed production.
The main issue, however, lies in whether the industry can innovate and evolve to fit the growing demand for self-driving and electrification, currently led by Tesla Inc (NASDAQ: TSLA).
This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be sent to ivana@iamnewswire.com
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