General Motors Co. (GM) will close manufacturing operations in North America until the end of March as the coronavirus sweeps across the country, according to a PRNewswire statement.
The Detroit-based automaker said it is shutting down all factories “due to market conditions, to deep clean facilities and to continue to protect people”. While the suspension will last until at least March 30, the production status will be evaluated week-to-week after that, the company said in the statement.
Analysts are bullish about General Motors, rating the company with a Strong Buy and an average price target of $42.78 per share. Its shares fell 15% to $17.22 in late afternoon trading in the U.S.
“We have agreed to a systematic, orderly suspension of production to aid in fighting COVID-19/coronavirus,” GM Chairman and CEO Mary Barra, said in the statement. “We have been taking extraordinary precautions around the world to keep our plant environments safe and recent developments in North America make it clear this is the right thing to do now.”
