Ford joins forces with 3M and GE to make a side business, and two FCA workers died tragically from the new crown
Musk, who doesn't take the outbreak seriously, also said he's going to build respirators, and as a result, before he could make good on his promise, he purchased more than 1,000 from China and donated them to California to save the day.
With the outbreak causing factory shutdowns, global car companies are starting to get into the side business, and following GM and FCA's production of respirators, Ford is joining forces with 3M and GE to produce medical supplies such as ventilators, respirators and masks.
In response to the uncertainty caused by the outbreak, GM has doubled its cash by drawing $16 billion in credit for a rainy day, and some analysts say the $32 billion in cash it will soon hold will be enough to sustain a shutdown for up to 21 weeks.
In addition, a spokeswoman for the United Auto Workers (UAW) confirmed March 24 that two workers diagnosed with the new coronavirus at an FCA plant have died, the first U.S. auto plant workers confirmed to have died after contracting the new coronavirus.
Just after saying he wants to build respirators
Musk buys more than 1,000 from China to save the day
Tesla CEO Elon?Musk has always been a man of many words, and has been outspoken about the coronavirus outbreak that has swept the globe, saying there is no need to worry.
Just as GM and Ford were discussing with the U.S. government the production of respirators for the purpose of preventing and controlling the outbreak, Musk also tweeted on March 19 that it would not be difficult to make respirators, given their expertise in air-conditioning systems and Space?X life-support systems, and that Tesla could make them if there was a shortage of respirator supplies.
On March 22, Musk said he was discussing a partnership with Medtronic, a medical device company, that would **** together to address the supply shortage.
Just as everyone was anticipating the details of Tesla's ventilator manufacturing, the billionaire tweeted again yesterday (March 24) that he had purchased 1,255 ventilators from China on Friday (March 20), which had already been airlifted to Los Angeles, and sent out a separate tweet expressing his gratitude for the help of Tesla's Chinese employees and customs officers.
"Yes, China is oversupplied, so we bought 1,255 FDA-approved ResMed, Philips, and Medtronic ventilators Friday night and flew them to Los Angeles. Let us know if you need a free ventilator allocation!" He tweeted.
California Gov. Gavin?Newsom told reporters at a news conference the same day that the ventilators had arrived in Los Angeles and that Musk was already working with the hospital association and other organizations to get the respirators working in real time. It's a valiant effort.
Musk has previously said that the panic around the outbreak is "silly." He argued that children are "largely immune" to the virus, despite evidence that it can be serious for some. Musk's decision to shut down the Fremont assembly plant starting March 24 came after days of wrangling with local officials over the shutdown.
Newsom said six companies in California have now offered their factories for the production of surgical gowns, and he is in talks with another 25 suppliers to make 3D-printed masks for health care workers. California, which faces a shortage of 50,000 hospital beds because of the spread of the epidemic, is currently planning to purchase 1 billion pairs of protective gloves and more than 500 million masks, according to the latest projections.
Ford teams up with 3M and GE
To produce respirators, ventilators and masks
Ford announced March 24 that it will "accelerate the production" of medical protection products such as respirators, ventilators and protective masks in an effort to help fight the coronavirus outbreak.
The company internally called it "Project?Apollo," inspired by Apollo 13's sharp space rescues.
It will work with 3M to produce a "powered air-purifying respirator," applying existing components from both companies to the new product. At this point, Ford is likely to make the new respirator at its Michigan plant.
Ford executives said the two companies had intense discussions over the past four days in which the company's engineers played a key role, and that the new product would use parts from the company's best-selling F-150, a portable battery pack and some 3-D printed parts.
"Ford and 3M were looking for off-the-shelf components such as the fan used to cool the seats in the Ford F-150, 3M?s HEPA air filtration material that filters out airborne contaminants such as virus-carrying droplets, and portable battery packs that allow the respirator to operate for up to eight hours." Ford said in a press release.
"Ford is considering ways to produce these next-generation PAPR protective devices at its Michigan manufacturing facility, helping 3M increase production by a factor of 10."
The company's partnership with 3M on air-purifying respirators is twofold. On the one hand, it will help boost production of 3M's current products. On the other hand, it will use a new design and incorporate its own components to produce a new design of respirator that will allow the new product to be used for more than eight hours.
Ford is also working with General Electric Healthcare (GE?Healthcare) to expand production of the simplified respirator. In addition to GE's manufacturing sites, it can be made at Ford's manufacturing sites.
The UAW will also play a key role in medical supply manufacturing. Ford and UAW workers will produce more than 100,000 protective masks a week, with about 75,000 to be completed this week, with the origin set for Plymouth, Michigan.
Ford Executive Chairman Bill?Ford said on the March 24 edition of the Today Show, "We've been there whenever we've been needed."
Forced by UAW pressure, Ford also temporarily closed its North American plants until March 30th. But Ford North America President Kumar?Galhotra said in a statement on March 24 that the start-up may have to remain delayed, without giving a specific time.
GM draws down $16 billion in credit to double cash
Withdraws 2020 financial targets
General Motors is withdrawing its 2020 financial performance targets because of the uncertainty created by the outbreak. It is also "aggressively pursuing austerity measures" to maintain liquidity, with plans to draw $16 billion from its revolving credit facility to double its current cash flow.
The company called it a "precautionary measure" to maintain financial flexibility, after it projected cash reserves of about $15 billion to $16 billion at the end of March.
GM has already announced a shutdown of North American plants until at least March 30 in response to the outbreak. Joe?Spak, an analyst at RBC?Capital?Markets, estimated in a client report that GM's impending $32 billion in cash would be enough to sustain a shutdown for up to 21 weeks.
CEO Mary?Barra said in a statement:
"We are aggressively pursuing austerity measures to maintain cash flow and take the steps necessary to manage liquidity, ensure the continued viability of our business and protect our customers and stakeholders in an environment of continued change and uncertainty. "In the statement, GM did not mention any plans to change the company's dividend payments. The company paid its first-quarter dividend of $0.38 a share on March 20, company spokeswoman Juli?Huston-Rough said.
"We are about a month away from declaring our second-quarter dividend." Julie said, "We will evaluate changes in the macro environment before making a decision."
The automaker's financial services arm, GM?financial, had about $24 billion in liquidity at the end of 2019 and expects to keep it at a similar level in the first quarter, allowing it to provide six months of cash support without access to capital markets channels.
"General Financial is prepared for moments like this and has maintained a strong financial position to facilitate ready access to cash. We are confident that we can meet the challenges presented by the current environment without the need for General Funding." Dan?Berce, president of General Finance, said.
On March 19, Ford also drew down a $15.4 billion loan from Ford Credit, withdrew its 2020 financial forecast target and also decided to suspend its dividend.
UAW Confirms Two FCA Workers Tragically Died From New Crown
A UAW spokeswoman confirmed March 24 that two workers at an FCA plant diagnosed with the New Crown virus have died, the first U.S. automotive plant workers confirmed to have died after contracting the new crown virus.
One of the employees worked at the Ram pickup plant in Sterling?Heights, Michigan, and the other worker worked at a plant in Kokomo, Indiana. It was not immediately clear when the workers died.
A UAW spokesman had no other information about the men and could not confirm whether they were the same two workers who tested positive for the virus in early March at the Sterling?Heights assembly plant and the Kokomo transmission plant.A spokesman for FCA did not disclose any information, citing the need to protect the privacy of employees.
"On behalf of myself and the entire International Executive Committee, I would like to express my sincere condolences to the families of the two members whose lives were taken by the virus." UAW President Rory?Gamble said in a statement, "This is a terrible tragedy for our entire UAW family."
FCA has now closed all of its North American assembly plants through at least the end of the month. This follows a brief closure of a Sterling Heights plant after it was discovered that one of its workers was infected with the virus, and on March 12, a worker at the Kokomo plant tested positive for a new coronavirus.
The news may bring the number of FCA employee deaths from the virus to three.On March 22, the Detroit Free Press reported that an FCA technician who was not a member of the UAW had died after testing positive. The automaker then announced it was postponing work related to its testing lab and pilot plant at its headquarters in Auburn Hills (Auburn? Hills), Michigan.
This article comes from the authors of Automotive House Car Family, and does not represent the views of Automotive House's position.