LANSING – Michigan manufacturing can resume production on Monday, Gov. Gretchen Whitmer said Thursday.
The auto plants have already said they plan to restart production one week later, on May 18. But the auto parts suppliers and tool and die shops, which said they needed to get moving ahead of the auto plants, can resume work as soon as Monday.
The governor's announcement is a major step forward in restarting the state's economy from the coronavirus pandemic, after a state of emergency was declared in Michigan on March 10 and a stay-at-home order issued March 23.
At the same time, Whitmer extended the stay-at-home order through May 28. It had been scheduled to end May 15.
Manufacturing accounts for about 19% of the state's economy, and close to 5% is already operating because it was deemed essential, Whitmer said.
“This is good news for our state, our businesses and our working families,” Whitmer said.
“We’re not out of the woods yet, but this is an important step forward on our MI Safe Start plan to re-engage our economy safely and responsibly. As we continue to phase in sectors of our economy, I will keep working around the clock to ensure our businesses adopt best practices to protect workers from the spread of COVID-19. When we all keep doing our part, we can reduce the risk of a second wave and re-engage our economy safely and responsibly.”
For the Detroit Three and Michigan auto parts suppliers, the news is relief. The carmakers and their suppliers must be in sync to restart operations given the supply chain.
Whitmer praised the industry and the UAW for agreeing to safe protocols for restarting. Required safety protocols include daily entry screenings for workers and others entering the facilities, including a questionnaire and temperature measurements. There must also be dedicated entry points at every facility, and suspension of all nonessential in-person visits, including tours.
In reaction to the governor’s decision, the UAW said it will continue its dialogue with the automakers and others in the industry to make sure the factory is doing everything it can to keep union members safe and healthy. The UAW said Whitmer has been a leading voice in protecting Michiganders from the pandemic.
“Gov. Whitmer has at all times been inclusive and focused on building consensus to do what is right for the health and safety of UAW members and all of Michigan’s working men and women,” UAW President Rory Gamble said in a statement.
GM said the governor’s announcement helps it continue to work toward its goal to restart most of its assembly plants on May 18.
“We continue to work toward that date and soon we will be communicating return-to-work dates for our employees,” said Jim Cain, GM spokesman. “The important thing is that everyone has clear guidance and a process for returning to work.”
Ford said it will begin restarting its plants May 18 and it North American parts operations will resume operations Monday.
“We’ve been working intently with state and federal governments, our union partners and a cross-section of our workforce to reopen our North American facilities,” said Jim Farley, Ford’s chief operating officer.
On Tuesday, Fiat Chrysler Automobiles said it was targeting the week of May 18 to begin restarting nearly all its U.S. plants.
More: Letter to Whitmer pleads for auto suppliers to restart sooner than Detroit Three
More: GM tells UAW members its planned date to begin factory restarts
All three idled their assembly plants in March after the UAW pressured a shutdown to protect the 150,000 U.S. factory workers from the spreading coronavirus. Many of the Detroit Three’s parts distribution centers have continued to run.
Laura Cox, chairwoman of the Michigan Republican Party, suggested Whitmer's action was the result of pressure from recent Capitol protests and lawsuits.
“Michigan Republicans in the state Legislature have been pushing for the governor to work with them to accomplish this task for weeks." she said. However, "the governor would rather waste time playing politics than getting things done. It's time for Gretchen Whitmer to work with Republicans and end her pointless power grab.”
As a result of the automaker shutdown, most parts suppliers also had to shut down their facilities.
Magna, the largest auto supplier in North America, has been preparing for a restart for weeks, including making its own Start Smart Playbook. Whitmer’s move clears the way to reopen factories.
“We applaud Gov. Whitmer’s decision to clear the way for automotive production to gradually restart here in Michigan, and as a result, across the U.S. as well,” Magna President Swamy Kotagiri said. “While the No. 1 priority for our industry needs to be the health and safety of employees, we also need to get the economy going again.”
Dana Inc., which has four facilities in Michigan with 1,500 workers, said it is working with its customers and government on ways to safely restart its operations.
“An earlier startup date is certainly beneficial, as it allows us to get an even further head start on resuming production,” said Carl Beckwith, Dana’s senior vice president of global operations.
The decision is appropriate, said another Michigan supplier.
“Given the previous announcements from both FCA and GM and others, we are all expecting and preparing for the May 18 restart here in Michigan, which will set the restart for automotive manufacturers in North America,” said Joe Petrillo, director of business development & advanced engineering for Meridian Lightweight Technologies in Plymouth.
“We are assuming that this date will be coordinated with Mexico as well.”
The reopening of manufacturing plants should relieve some pressure for the auto industry, which it desperately needs right now, said Jessica Caldwell, auto analyst firm Edmunds' executive director of Insights.
“Pickup truck sales have been the one bright spot for automakers during this pandemic, but inventory is in danger of being in short supply if the halt in production continues beyond mid-May,” Caldwell said.
“Getting manufacturing facilities up and running again will help the Detroit Three ensure that the consumers who are shopping right now are getting the selections they want and bring in some profitability during these difficult times.”
On Monday, a Michigan automotive association lobbied Whitmer in a letter to allow auto parts suppliers to start running at least five days before the Detroit automakers restart their plants.
In that letter, the executive director of MICHauto, Glenn Stevens, wrote: "Supplier firms must be up and running before OEMs come online. Unlike their (auto manufacturer) counterparts, many firms that comprise the automotive supply chain lack the vast resources to make the necessary production, process and policy changes required to adapt to the new environment in short order."
MICHauto is an economic development initiative of the Detroit Regional Chamber that focuses on supporting the automotive industry in Michigan.
On Thursday, Stevens said MICHauto and the Detroit Regional Chamber "applaud the governor for her continued steps to safely reopen our economy."
"Automotive and manufacturing is not only the backbone of our regional and state economy, it is essential to the functioning of the global supply chain," Stevens said.
Also of concern for the U.S. auto industry is whether Mexico’s president will allow manufacturing to resume there given the country is on lockdown until May 30. But the president has reportedly said he would be flexible to work with the broad auto industry on a restart.
As for other sectors, residential and commercial construction, in-person real estate sales, and outdoor sectors such as parking enforcement and forestry resumed Thursday under an earlier easing of restrictions announced by Whitmer.
Earlier, landscaping services, greenhouses and golf were all given the green light, with certain restrictions.
Contact Paul Egan: 517-372-8660 or pegan@freepress.com. Follow him on Twitter @paulegan4. Read more on Michigan politics and sign up for our elections newsletter.
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