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May 04, 2020 12:00 AM

General Motors

Hannah Lutz
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    Production of the new Chevrolet Corvette has been disrupted by the crisis.

    General Motors had only a few months to recover from the 40-day UAW strike last fall before the coronavirus outbreak forced another production stoppage that has lasted even longer.

    Shortly after shutting down its North American plants in late March, GM began exploring ways to use its manufacturing capabilities for medical supplies. It partnered with Ventec Life Systems, a ventilator manufacturer based near Seattle, and it received an order for 30,000 ventilators from the federal government after President Donald Trump activated the Defense Production Act.

    GM converted a parts plant in Kokomo, Ind., for ventilator production and last week said it was hiring more than 1,000 full-time and part-time workers to meet demand. The plant currently is staffed by several hundred GM workers who asked to help in the effort.

    Other GM workers are making face masks, shields, gowns and other personal protective equipment at an idled transmission plant and the technical center in Warren, Mich. GM has so far shipped upwards of 600,000 face masks to Michigan hospitals and other essential businesses.

    Full coverage
    How automakers have been changed by a virus

    The automaker withdrew its 2020 financial guidance, stopped share buybacks and suspended quarterly cash dividends on its common stock. It also temporarily slashed salaried employees' pay by 20 percent but promised to pay the workers back by March 2021. Executives and board members took additional compensation cuts that will not be repaid.

    Production of the highly anticipated midengine 2020 Chevrolet Corvette, already delayed by the UAW strike, was disrupted after only about 3,000 cars could be built. Freshenings of the Chevrolet Equinox, Traverse and Bolt EV planned for this year have been delayed to the 2022 model year.

    It's unclear how the crisis will affect GM's plans to launch 20 electric vehicles by 2023. It began retooling its Detroit-Hamtramck assembly plant to make several EVs, including the GMC Hummer. Construction also began for a battery plant in Ohio that will be jointly owned with LG Chem. The plant will make batteries to power GM's EVs and two upcoming Honda EVs.

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