Please ensure Javascript is enabled for purposes of website accessibility

Ford Bans Employee Travel on Coronavirus Fears

By John Rosevear - Mar 4, 2020 at 11:04AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

No flights allowed, even within the U.S.

Ford Motor Company (F 3.89%) told employees on Tuesday that it is banning all non-essential air travel until at least March 27 because of concerns about the novel coronavirus.

Ford had been restricting travel to and from China but has now extended the ban to all flights, both international and within the United States, out of concern for employees' health and safety. 

There may be exceptions, a Ford spokesperson said, but they will probably be rare.

Ford's world headquarters in Dearborn, Michigan.

Image source: Ford Motor Company.

CEO Jim Hackett said in a letter to employees that Ford will have to "find creative ways to complete work" without travel until the impact of the virus recedes. 

Exceptions to the travel ban will be limited to situations that are essential to Ford's operations and that don't create a health hazard, he said, possibly including preparations for upcoming new-product launches. 

The outbreak of the novel coronavirus has played havoc with automakers' supply lines, as assembly plants and parts factories in China and elsewhere have been shut down for weeks at a time. 

Ford and other global automakers, including General Motors (GM 5.55%) and BMW (BMWYY 0.60%) (BAMXF -0.04%), have warned investors that the effects of the virus in China and elsewhere could impact earnings as the year unfolds. 

New-car sales in China fell 80% in February as buyers stayed home, according to the China Passenger Car Association (CPCA). 

Ford confirmed earlier reports that two of its associates in China were diagnosed with the coronavirus and quarantined. Both have since fully recovered. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ford Motor Company Stock Quote
Ford Motor Company
F
$12.01 (3.89%) $0.45
General Motors Company Stock Quote
General Motors Company
GM
$34.82 (5.55%) $1.83
Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
BAMXF
$78.77 (-0.04%) $0.03
Bayerische Motoren Werke Aktiengesellschaft Stock Quote
Bayerische Motoren Werke Aktiengesellschaft
BMWYY
$26.70 (0.60%) $0.16

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
321%
 
S&P 500 Returns
111%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.