The Detroit 3, Honda, Toyota, Nissan, Volkswagen, Subaru, Volvo and Mercedes-Benz all announced this week they would idle production for varying lengths of time as North America struggles to combat the growing pandemic.
Linamar, which is headquartered in Guelph, Ont., operates plants in 11 countries, including all three USMCA member nations, and counts Ford Motor Co. and General Motors among its customers.
“We are gathering information daily from our global operations, adjusting plans as required and communicating regularly to key stakeholders pertinent information,” Hasenfratz said. “We are keeping our employees safe, our customers supplied with their needs and mitigating the financial impact of the situation as best we can.”
During a fourth-quarter earnings call on March 12, Linamar said the COVID-19 outbreak will have the single largest impact on the first quarter of 2020, with an estimated hit of US$14.5 million to US$21.7 million on operating earnings.
The supplier said the novel coronavirus could also impact the second quarter and warned of a possible disruption in Linamar’s North American and European supply chains as a result of the pandemic.