Magna provides COVID-19 update, withdraws outlook
The Aurora, Ont.-based auto parts supplier has established “internal task forces" to deal with the potential impact of COVID-19 on its business.
Automotive parts supplier Magna International has established what it calls “internal task forces” to assess, monitor and deal with the potential impact of COVID-19 on its business and share information across the company; and is withdrawing its most recent outlook for 2020.
“We continue to adjust our operations and take actions to protect the health of our employees, suppliers and visitors,” Aurora, Ont.-based Magna said in a March 26 statement.
“A number of our OEM customers, particularly in North America and Europe, have initiated production downtime or have reduced production rates,” the company said. “It is uncertain whether OEMs will extend production downtime or further lower production rates as circumstances evolve. While specific production schedules for our operations vary by location and customer, many of our facilities have reduced or suspended operations for reasons related to the COVID-19 pandemic, including as a result of government-ordered restrictions.”
For its facilities that continue to operate due to customer schedules, Magna said it is taking steps to safeguard employees through enhanced administrative controls, employee monitoring strategies, more rigorous cleaning practices, and physical distancing.
The Aurora, Ont.-based company also said its business in China is beginning to recover after a prolonged slowdown. “Following an extended period of production downtime in February, our operations in China continue to ramp up along with the overall local industry,” Magna said. “While business activity continues to increase, it remains below the production levels anticipated earlier this year.”
Given what it calls “the high degree of business uncertainty” caused by COVID-19, Magna is also withdrawing its outlook. “We will next provide a general business update when we report our first quarter 2020 results and will resume providing an outlook at a future date,” the company said.
Magna also said that it is reaching out to the health care sector curing the pandemic. “We are working creatively to help source and produce critically-needed supplies and equipment…[and] our global purchasing organization has been successful in securing significant quantities of masks for local hospitals and health care authorities,” the company said.