Automotive’s “Opportunity Costs Of Goods Sold” During COVID-19

Explorer Roald Amundsen said “adventure is just bad planning,” and there are quite a few adventures going on within automotive these days, especially with respect to personnel during this COVID-19 crisis. In just the past couple of weeks, we have seen the following announcements:

March 17th: Volkswagen announces 7,000 jobs slashed

March 25th: FCA lays off 2,000 contract workers

March 26th: Ford partially defers executive pay, foretells of possible job cuts

March 26th: General Motors
GM defers 20% of pay for 69,000 salaried workers, furloughs 6,500

March 29th: Penske announces executive pay cuts and looming layoffs

March 30th: FCA temporarily cuts salaries from 20% (salaried) to 50%

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