Even someone who lives under a rock knows about the Coronavirus (COVID-19) and is feeling its effects. The auto industry is no different. Some automakers like Kia and Hyundai are taking this situation seriously and are offering to pay six months for owners who bought a vehicle and are now temporarily laid off. Others, like Ram, hesitated to make a decision about closing down plants, and several workers walked out.
Ford is also feeling the heat. At the moment, consumers are more focused on scooping up the last roll of toilet paper than they are the last Ford Fusion in their local showroom. So how is Ford’s stock being affected? Here’s what the current market looks like.
Will Ford be shutting down production plants because of Coronavirus?
With schools, restaurants, and sporting events being shut down, it only makes sense that other industries will follow suit. Even NASCAR barred fans from seeing the IndyCar races in an effort to curtail the spread. There are lots of decisions to be made, and none of them are easy.
The CDC is now recommending that people implement social distancing. There are also recommendations that only 10 people interact in many parts of the nation. This may prove to be impossible in some workplaces, however, and leads to the question of whether auto plants remain open and risk workers becoming infected, or close to help prevent the spread of COVID-19.
According to WDRB News, Ford has decided not to bow the knee before the Coronavirus, at least not here in America. The UAWbuilding chairman for the Louisville Assembly Plant Herb Hibbs is on the front line for trying to get the plants shut down and prevent the spread of the virus. He has reached out to Ford, but at this time, Ford plans to keep its plants open.
That’s not quite the case in Europe. Business Insider reports that Ford has made the decision to shut down European plants. This is in large part due to the lack of supplies currently available. Ford’s European president Stuart Rowley stated,
“While the impact of coronavirus at our facilities so far has been limited thankfully, its effects on our employees, dealers, suppliers and customers, as well as European society as a whole, is unprecedented.”
How is Ford’s stock being impacted by Coronavirus?
It’s no secret that stocks are bouncing all over the charts similar to a game of ping pong. With the decision to shut down Ford’s European plants, Ford’s stocks have taken a fall, but it has also risen. In other words, the stock appears to be all over the place.
The Motley Fool has pointed out that Ford has made some questionable decisions in the past two years, but that there are also some great new products coming out like the all-new Bronco, so this might be enough to save Ford. Only time will tell if the stock continues to bounce up and down or if it will stabilize.
New Ford owners will receive help with payments
Ford is not blind to the fact that many new owners are in between a rock and a hard place at the moment. They bought a new vehicle, knowing they’ll be able to pay, only to be laid off from work temporarily due to COVID-19. The good news is that for up to 90 days, they don’t have to worry about making their car payment.
The Business Insider reports that all you need to do is to go to your Ford account manager at accountmanager.ford.com. You can also contact Ford at fordcreditsupport.com or call 1-800-723-4016 if you suspect you may need to delay payments.