Ford plans to reopen plants in second quarter

Major US automaker Ford plans to reopen its global manufacturing plants in the second quarter, but said it has enough cash on hand to maintain plant closures through September.

The only active auto production Ford is doing right now is at its joint ventures in China, where Covid-19 impacts have moderated. The remainder of the company's global operations are closed.

Ford's North American auto plants have been shuttered since mid-March, when it and the other major US-based automakers — General Motors (GM) and Fiat-Chrysler Automobiles (FCA) — announced plant closures for an initial two weeks due to coronavirus concerns voiced by union representatives.

In Europe, Ford's auto plants are closed through 4 May.

Many steel market participants have said automakers would need to restart by early May for the US steel industry to rebound.

All three US-based automakers have extended shutdowns from original planned restart dates. FCA is the only US-based automaker to give a firm date for turning its plants back on, which it plans to do on 4 May.

Japanese carmaker Toyota's North American operations will remain shuttered for the rest of April and restart on 4 May. The plants had planned to resume production on 20 April.

Honda plans to resume operations at its North American plants on 1 May, while Nissan says its US plants will remain closed through the end of April.

The shutdown of the North American auto industry has curtailed steel use, rippling through auto suppliers and forcing many to close their doors. Integrated steelmakers have closed multiple blast furnaces. More than 6.7mn short tons/yr of flat-rolled steel production has been idled in the last month.

By Rye Druzin