Canadian automotive supplier Magna International will restart North American production on May 4, gradually increasing output in proportion to recovery from industry shutdowns spurred by COVID-19, according to reports.
Magna has already ramped up some of its facilities to 80pc capacity in China, where auto production has resumed.
European auto plants are currently in the process of restarting, and in the US, General Motors, Ford and other automakers are awaiting government approvals, but plan to be operational by early next month.
Virtually all US states have stay-at-home orders in place until the end of April, but many automotive companies and suppliers interpret that reopened plants signify headway in slowing the virus’ spread.
According to reports, Magna has stated that everything is in place for its plants to begin operating May 4 and that, most importantly, the industry must not keep vacillating between starting and stopping production.
Magna manufactures body structure, chassis, and powertrain parts for customers such as Ford and Volkswagen. The company withdrew its financial guidance last month because of the pandemic, but said its liquidity is strong. Subsequent to increasing a revolving credit facility April 14, Magna has $1bn in cash and $3.7bn in credit line availability.