Subaru Sends U.S. Employees on Furlough

The impact of the coronavirus pandemic in the United States is growing bigger by the day, with the automotive market being one of the hardest-hit industries.

Several other companies have temporarily closed their facilities and halted operations in a bid to protect their employees from the virus and direct their efforts into producing much-needed medical equipment.

Subaru is among the latest companies to join the list.

According to a report published by Automotive News, Subaru will send their U.S. employees on furlough for the time being. The furlough will impact all hourly workers at the company’s facilities in Lafayette, Indiana, where around 5,300 production workers are employed.

“The situation was no longer sustainable while production remained suspended amid health concerns, declining market demand, and supply chain issues,” a spokesperson for Subaru said.

The Japanese automaker first announced shutdown on March 23 around the same time several car manufacturers were announcing a halt to their production. Subaru maintains that workers have been paid since the shutdown was enforced, but that the furlough will be unpaid beginning Monday, April 13.

The furlough, however, will only last for one week and Subaru will still pay health care benefits to all workers affected by the decision.

Aside from Subaru, Tesla also announced its decision to furlough half of its sales and delivery employees across the U.S., according to a report from CNBC. A Tesla spokesperson, however, declined to comment on the report.

Nissan and Honda were the first to announce employee furloughs in America, with a combined 20,000 workers affected. Volkswagen also followed with its own announcement for the entire production and maintenance workforce in Chattanooga, Tennessee.

Honda and Nisan are looking to reopen plants on May 4 and April 30, respectively, while Volkswagen said it is not clear when operations will return to normal.