Toyota Motor mentioned Wednesday it intends to resume operations at its North American auto plants on May 4, extending its current shutdown by two additional weeks.
The Japanese auto manufacturer cited the ongoing COVID-19 pandemic and drop in automobile demand to extend the halt of manufacturing at all of its car and parts factories in Canada, Mexico and the U.S.
Toyota will not furlough its direct employees; however, it has asked its hourly plant staff to take two days out of the 10-day extension as paid time off or they’ll go without pay if they don’t have accrued leave.
For Toyota’s 5,000 staff provided by outside agencies, Toyota is releasing those staff back to their agencies. Toyota will proceed to pay the benefits of those employees for the time being, and they may be eligible for unemployment.
On Tuesday, Honda Motor Co and Nissan Motor Co on Tuesday mentioned that they had furloughed 1000’s of employees at their U.S. operations because the coronavirus pandemic slashes demand vehicles within the nation.
A spokesman for Honda, which employs about 18,400 staff at factories in Alabama, Indiana, and Ohio, stated the Japanese automaker would assure salaries through Sunday, having suspended operations on March 23. The factory might be closed through May 1.