Welcome to The Grid, R&T’s quick roundup of the auto industry and motorsports news you should know this morning.
GM Gets Ventilator Contract
As part of the Defense Production Act, General Motors has been awarded a $490 million contract to build 30,000 ventilators for the federal stockpile. Automotive News reports that this is the first federal contract for ventilator production. The ventilators will be built at GM’s Kokomo, Indiana facility, and the company expects to deliver a little over 6000 units by June 1st. Ford has also converted its Rawsonville plant in Ypsilanti, Michigan to make ventilators, but it doesn’t have a government contract.
Insurance Companies Returning Premiums
As a result of the coronavirus crisis, Americans are driving far less than usual. CNN reported yesterday that Allstate and American Families Insurance will refund $800 million in insurance premiums to its customers. Reuters also reports that Geico will offer a 15-percent credit, totaling $2.5 billion, on policies eligible for renewal between April 7th and October 8th.
Tesla Furloughs Plant Workers
Demand for new cars has dropped significantly, and many U.S. auto factories have been forced to close. Reuters reported late yesterday that Tesla has taken the step to furlough “non-essential” workers at its Fremont, California auto plant and solar-panel factory in Buffalo, New York. Those employees will retain their health benefits until production resumes, which Tesla expects to be in early May. Additionally, salaried Tesla employees will take pay cuts beginning next week, which will be in place until the end of the first quarter.
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