As the number of COVID-19 cases increase around much of the world, many global companies, including Cummins Inc., are working to navigate an evolving patchwork of responses to the outbreak from governments around the world.
Some countries, such as China, where new cases of COVID-19 appear to be dwindling, are attempting to kickstart their economies after weeks of restrictions and lockdowns aimed at combating the outbreak. Other countries, including India, have come to a grinding halt in recent days.
Cummins, which is based in Columbus and operates in more than 190 countries, has reopened all 10 of its facilities in Hubei Province, including in its capital, Wuhan, and is in the process of ramping up production, said Tony Satterthwaite, company vice president and chief operating officer.
Most access to Wuhan, a city of around 11 million people about 450 miles west of Shanghai, was suspended on Jan. 23 in a dramatic effort to contain the outbreak, but Chinese authorities are beginning to gradually lift the restrictions, according to The Associated Press.
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The last Cummins facilities to resume operations in the province were reopened between March 11 and 16, the company said.
“All of Cummins’ facilities (in Hubei Province) are open. We are ramping up bit by bit,” Satterthwaite said. “We are operating all those facilities somewhere between 30 and 90% capacity in Hubei. The (Chinese) government is still not allowing everyone to come back to work at once, so there is still some management of number of people we can have in different facilities, but all of our facilities are open and we are getting them ramped back up to where we want them to be.”
But while China is attempting to open up, India has shut down.
In a televised address on Tuesday night, Prime Minister Narendra Modi announced a “total lockdown” of India and its 1.3 billion residents for 21 days starting Wednesday, The Associated Press reported. Modi reportedly gave around four hours’ notice of the lockdown.
Though Modi said the lockdown would be “total,” officials after his speech said medical, law enforcement, media and other sectors were exempt and that stores selling food and other essentials would remain open.
The move, however, put nearly one-fifth of the world’s population under lockdown.
As of Friday, there were at least 863 confirmed cases of COVID-19 in India and at least 20 deaths linked to the virus, according to Johns Hopkins University.
Indian officials have repeatedly insisted there is no evidence yet of localized spread but the country has conducted relatively little testing for the disease, according to wire reports.
So far, the lockdown in India is having an effect on Cummins’ operation in the country, Satterthwaite said.
“I would say the lockdown in India has been quite drastic, so the short answer is, yes, all of our facilities in India are impacted by the government shutdown,” Satterthwaite said. “…The entire country is shut down, and out of all the shutdowns we’re dealing with around the world, China’s was the most dramatic by far, but I would say India’s is probably the second most drastic shutdown.”
Cummins in India is a group of eight legal entities, collectively operating 21 manufacturing facilities and 200 locations in the country, the company said.
In North America, several automakers have announced temporary shutdowns, including Fiat Chrysler Automobiles, which uses a Cummins engine made in Walesboro to manufacture Dodge Ram pickup trucks.
Currently, the Walesboro facility, the Cummins MidRange Engine Plant, is on a two-week shut down that started March 20.
“We will start back as soon as Chrysler is ready for us to start back,” Satterthwaite said. “…But I’ll be honest with you, I don’t know when that’s going to be. I’m hoping it will be two weeks, but that’s up to Chrysler.”
On Thursday, Cummins announced that it will change shift patterns and reduce hours for employees at Cummins Fuel Systems Plant and Cummins Engine Plant in Columbus and the Cummins’ Seymour Engine Plant starting Monday primarily due to Gov. Eric Holcomb’s statewide stay-at-home order.
The stay-at-home order, which bans non-essential travel by Hoosiers for two weeks, started Wednesday and runs through April 7 and aims to slow the spread of COVID-19 in the state, Holcomb said Monday.
It is the intent of Cummins not to lay off any of its employees at all, company officials said.
Last week, Cummins withdrew its business outlook for 2020 because the company’s initial forecasts were made before the novel coronavirus pandemic spread around the world.
“Cummins’ financial results for the first quarter will be impacted by these changes in customer production plans, but a more significant concern is the growing uncertainty about demand for the remainder of 2020,” the company said in a statement last week. “As a result, the company has withdrawn its guidance for full year 2020 results, which did not factor in the effects of the coronavirus pandemic.”
Satterthwaite, however, said he is confident Cummins is in a strong position to handle the coronavirus crisis.
“Cummins has had a history of weathering economic storms,” Satterthwaite said. “We live in a cyclical business and we’ve survived in that business for 101 years now, and we have seen difficult times come and better times come later.”
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Cummins Chairman and CEO Tom Linebarger shared a letter on Cummins’ website on March 19. This is the letter:
The COVID-19 pandemic has now touched every corner of the world. We are in uncharted territory, and all of us are having to make changes – big ones – in how we live and work.
Like many of you, I am concerned about my family, especially my parents who are in the high-risk category. I am also concerned about all of you and about the impact the pandemic is having on our people, our customers and partners, and our communities. My heart and thoughts go out to everyone who has been affected by the coronavirus or the problems created by the pandemic. The impact on people is very significant.
The impact on the global economy is also large and growing and its significance will not be fully understood for some time. As restaurants, hotels, and businesses of all sizes close their doors, many employees will be unable to earn wages and will soon find themselves experiencing financial challenges. Many of these businesses support our company, our communities and our families, and their employees are people we know personally.
At Cummins, we are doing everything that we can to continue supporting our customers and partners and to keep our business operating so we can support our employees and our communities. Moreover, our products are critical to the economy at this time. We supply primary and backup power to medical facilities, power to data centers and call centers that help keep people connected, engines for ambulances, fire trucks, food and medical delivery vehicles, and so much more. Our service workshops around the world also ensure that these products continue to work when they are needed most.
I want to sincerely thank those of you who are working at our manufacturing plants, distribution centers, technical centers, and service operations around the world. I have never been more proud of the ways that Cummins employees and products power the world.
In order to fulfill our mission, we must also ensure the health and safety of all of our people. Given the size and speed of the pandemic, we are working across all areas of our company and with governments, agencies and other groups to make informed decisions and act as quickly as possible. We have cross-functional subject matter experts who are working diligently on a daily basis to address topics from employee health and wellness to customer and supply chain impact. In addition, our senior leaders meet every day to conduct and review global risk assessments, review new information and make the best judgments and decisions we can based on the facts while staying consistent with our company values.
Many of the countries where we operate have implemented emergency measures to curb the spread of the disease, such as banning and restricting gatherings, closing schools and educational facilities, and strongly encouraging social distancing. We need to follow these mandates and the expert guidance provided by the Centers for Disease Control in the USA, the World Health Organization, and other national health institutions on how to minimize the spread of the virus.
These measures are essential to ensure our global healthcare systems are not overwhelmed so that those who need it most can get the care they need. This guidance requires us to change many of our habits and behaviors, but we must do so for our own health and for those most vulnerable in our communities.
This is a very difficult time. But we will get through this. We will continue to rely on the amazing people and teams in the company to solve problems as they arise. We will provide support to our employees and their families as they face new challenges. And we will continue to care for each other.
I know that an outbreak like this can be frightening. In times like this, when social distancing and isolation are advised, personal connection – even electronically – is more important than ever. Please, reach out to your colleagues and friends via those virtual channels and ask them how they are doing and ask what you can do to help.
Take care,
Tom Linebarger
Chairman and CEO | Cummins Inc.
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