Detroit automakers hope to restart North America plants May 18

Major U.S. automakers are planning to reopen North American factories within two weeks, potentially putting thousands of workers back on the assembly line as part of a gradual return to normality.

Fiat Chrysler Automobiles (FCA) CEO Mike Manley said Tuesday his company plans to start reopening factories May 18 depending on easing of government restrictions. Detroit automakers will likely be on the same timetable because their workers are represented by the same union.

The United Auto Workers (UAW) union on Tuesday appeared to be onboard.

Detroit automakers employ about 150,000 factory workers in the U.S. alone. Auto plants have been shut since mid-March because of the outbreak. At least 25 employees at auto facilities represented by the UAW have died as a result of COVID-19, although it's not known if they were infected at work.

Manley said a lot depends on whether Michigan Gov. Gretchen Whitmer allows factories to reopen. Michigan's shelter-at home order remains in effect until May 15.

Last week, Whitmer hinted that auto plants may soon reopen as the curve of cases continues to flatten. She said the reopening could take place as long as the UAW can ensure employees feel safe.

Armed protesters entered the capitol building last week and the Republican-led state legislature refused to extend the state's coronavirus emergency declaration. They also voted to authorize a lawsuit challenging Whitmer's authority and actions to combat the pandemic.

Whitmer faces pressure from the White House to relax restrictions as well.

Auto manufacturing is a major economic driver in Michigan, of course, and the state is facing a crippling cutoff in revenue with the plants closed.

Meanwhile, FCA's Windsor Assembly Plant is being prepped for reopening. 

Union president of Unifor Local 444, Dave Cassidy, represents approximately 6,400 at the Windsor, Ont. assembly plant.

The factory — which at one point was slated to open May 4 — has set up tents outside of entry gates where employees will be screened before entering. 

"Those tents are going to be almost like a staging area," said Cassidy, who will join other officials for a walk-through of the factory on Friday. 

Union support essential for production restarts, analyst says

For for his part, Automotive News publisher Jason Stein said he wasn't surprised to hear that automakers plan on restarting facilities in mid-May. 

"Really, the one hurdle was just getting the union on board, and the UAW actually came out today to say that it is in continuous talks with the Detroit Three about really protecting workers," he said. 

When automotive manufacturers began taking steps in late March to restart production, unions in both Canada and the U.S. expressed hesitation and skepticism about the decision. 

"That union support is critical to making sure that these factories can be up and running, but [so is] the fact that the union which had opposed an early-May return to work is not necessarily renewing its previous opposition."

... The machinery of the automotive engine needs to be fired up again.- Jason Stein, Publisher, Automotive News

Stein added that Detroit automakers are "hard at work" to come up with a playbook to guide factory restarts. 

"These are 50-pages-thick," Stein said. "They detail how often a worker can take a lunch break, what groups will be leaving at various times for other breaks, temperature checks that are taken in the parking lots before a worker enters the facility."

He said all three Detroit automakers, as well as other global manufacturers and suppliers are "working hard to make sure that they have the right provisions in place so that everyone is safe in these situations."

As for employees, Stein said they're anxious to return to work, but they're also concerned about their health and wellness once they are back. 

"Everybody two months later realizes that you cannot have these large global conglomerates shut down for weeks on end," he said. "In that way, the machinery of the automotive engine needs to be fired up again. Otherwise we're going to face a dire financial calamity."

Despite steps being taken to restart production facilities, Stein said it's now on parts suppliers to "make sure that they have enough capital, enough cash to make sure that they can produce the parts that are needed."

LISTEN | Jason Stein talks automotive restarts with Afternoon Drive host Chris dela Torre:

"And that's what we don't know right now," he said. 

Stein said it will likely take one month to six weeks "before we see any semblance of order, even in the magnitude of say 75 per cent of a plant running at its full capability."