Nissan will keep its manufacturing and assembly plants in Tennessee and Mississippi shuttered until the end of April, although the company but did not specify a specific date.
Volkswagen of America also announced it was pushing back the date it plans to resume production at its plant in Tennessee until April 12.
“The health and safety of our team remains our highest priority. Volkswagen Chattanooga will remain closed next week, extending the production suspension which began March 21. We plan to resume production Sunday, April 12, at 10 p.m., VW said in a statement.
(Ford converting second plant to build powered respirators.)
Volkswagen said it will continue to pay all Volkswagen Chattanooga employees in full next week; however, all employees will be required to take paid time off on Friday, April 10. Hourly and salary non-exempt employees will have the option to take “no pay-no penalty” for this day, and salary exempt employees may use comp time, Volkswagen said in its statement.
In addition, employees able to telework, such as office staff, will continue to do so April 6-9. The company asked all employees to self-quarantine and maintain social distancing as directed by the CDC.
“We will continue to monitor the situation and will take any and all additional steps as they become necessary, communicating updates as they are available,” according to Volkswagen’s statement.
(New Nissan subscription service lets you drive a different car every day.)
Meanwhile, Nissan, which was struggling even before the pandemic shut down the U.S. economy, said it shutdown will extend through the month of April. Nissan Group announced total U.S. first-quarter sales for the calendar year 2020 of 257,606 units, a decrease of 29.6% versus the prior year.
“Nissan manufacturing facilities in the U.S. will remain closed through late April as a measure to help protect employees and reduce the spread of COVID-19 coronavirus. Some business-essential work that must be done on site will continue with enhanced safety measures,” Nissan said in a statement.
“We will continue to monitor the situation closely and will make adjustments as needed,” the statement said.
Nissan, like other automakers, suspended production last month as the economy ground to a halt as federal and state health officials called for businesses to close and Americans to practice social distancing to slow the spready of the lethal virus.
(Volkswagen shutting European factories for two weeks, wars of “very difficult year.”)
General Motors Co. has not ventured to announce when it planned to open its assembly plants, while Ford Motor Co. has put off plans to restart production in the middle of April and Ford’s CEO, Jim Hackett, has been saying the company’s factories may not re-open until May.
