INDIANAPOLIS (WTHR) - We're working to confirm whether any Allison Transmission plants in Indiana could be affected by a new round of cutbacks starting next week.
The company announced Friday it's suspending production at certain plants because of a decline in demand.
It did not specify which plants are impacted.
We know some employees are already getting temporary layoff notices starting Monday and lasting through April 3.
The following appears on the Allison Transmission website:
Allison Transmission Holdings Inc. (NYSE: ALSN) today provided a business update in light of the rapid spread of the COVID-19 virus. In response to recent disruptions to our supply chain, changes in customer demand and a weaker outlook for the global economy, Allison is temporarily suspending production at select manufacturing facilities beginning March 30, 2020. The company will continue to monitor the situation and will adjust production at other facilities as the situation warrants.
During this period, to protect the safety, health and well-being of our employees, customers, suppliers and communities Allison continues to implement preventative measures while also meeting the needs of customers, including increased frequency of cleaning and disinfecting of facilities, social distancing, remote working when possible, travel restrictions and limitations on visitor access to facilities.
The company is also withdrawing its previously announced guidance for the fiscal year ending December 31, 2020, which did not factor in the effects of the COVID-19 pandemic. Allison cannot predict if or when any further disruptions will occur due to the rapidly changing environment as the COVID-19 pandemic continues to evolve. Possible causes for further disruptions include additional changes in customer demand, further disruptions in supplier deliveries and the impact of government regulations or mandates. Allison believes its future financial results will be impacted, but at this time, the magnitude of those impacts is uncertain. The company will comment on its 2020 outlook during its first quarter 2020 earnings call.
“Allison’s long-standing commitment to prudent balance sheet management has positioned the company to navigate through this challenging period,” said David S. Graziosi, President and Chief Executive Officer, Allison Transmission. As of December 31, 2019, the company had $192 million of cash and $595 million of available revolving credit facility commitments. Allison also maintains a flexible and long-dated debt structure with the earliest long-term debt maturity due in 2024.