Fiat Chrysler temporarily closed its plants in Italy as the country battles the coronavirus epidemic.
Fiat Chrysler Automobiles is taking new measures across its facilities in Italy to support the nation’s campaign to contain the COVID-19 crisis, which is paralyzing Italian society as the numbers of people infected by the virus have exploded.
“As a result of taking these actions the company will, where necessary, make temporary closures of its plants across Italy,” FCA said in a statement.
FCA’s statement said, “Above and beyond the measures already taken in support of government directives, the company will focus on actions to minimize the risk of spreading the contagion between employees.”
(U.S. auto sales may fall off due to coronavirus.)
Jeep Renegade production will be impacted by the move to temporarily close all FCA plants in Italy.
The actions include intensive sanitization of all work and rest areas, changing rooms and washrooms. To enable greater spacing of employees at their workstations, daily production rates will be lowered to accommodate the adapted manufacturing processes, FCA said.
These important new measures further reinforce the health and safety initiatives taken by the company as an immediate response to the recent outbreak of the virus in Italy and constantly communicated to employees through multiple internal channels.
During February the company started a program to progressively implement “Smart Working” or working from home to more office-based employees in addition to spacing measures and controlling employee numbers at company cafeterias.
(Auto industry waiting for impact of coronavirus in U.S.)
All administrative areas of the company will continue their normal activities in compliance with government directives and regulations and while maintaining the safe distance and hygiene measures introduced immediately upon the outbreak of the COVID-19 virus, the statement said.
The company just introduced its new 500e in Milan and now production is halted.
Analysts from Schaeffer’s Invest Research said Fiat Chrysler has suffered during the recent broad market selloff. The stock is off 27.4% in 2020, guided lower by its 10- and 30-day moving averages. “This year-to-date dip has undoubtedly been exacerbated by this week’s massive bear gap that sent FCAU to two-year lows, though it looks like the $10.50 region may be acting as the floor for the shares,” the Schaeffer report noted.
Analysts have yet to chime in, but there’s plenty of room for downgrades. Coming into today, four called Fiat Chrysler a “strong buy” and two considered it a “hold.” Plus, the consensus 12-month target price of $18.50 is a 73.7% premium to current levels, the report added.
(New York Auto Show postponed until August due to coronavirus.)
Last month, FCA was forced to close a plant in Serbia temporarily because of parts shortages created by the COVID-19 outbreak in China.