Lear Corporation (NYSE: LEA) faces an uphill battle to regain worker trust after the deadliest coronavirus outbreak at its factory in Mexico.

What Happened

The United States-based auto parts maker’s Rio Bravo, Mexico factory suffered 20 fatalities from COVID-19 that have left workers shaken, reported Reuters.

“I don’t think you’ll find anyone who says they’re not scared,” said Sonia Trevizo, an employee at the plant.

The auto parts maker says it has instituted expensive health and safety measures at its plant, which could affect productivity as it resumes operation.

Production was halted in March, a month after the first cases of COVID-19 were detected in Mexico.

Why It Matters

Lear has 41 plants in Mexico and employs 56,000 people in the country. The Rio Bravo plant makes trim seat covers for Ford Motor Company (NYSE: F) and Daimler AG (OTC: DDAIF) owned Mercedes-Benz, reported Reuters.
Lear has not disclosed the names of employees that died in the outbreak, which is believed to be the worst in the Americas.

Three Lear employees told Reuters anonymously they are afraid to go back to work but are in need of money.

Sergio Corral, the plant manager at Rio Bravo factory, expects productivity to drop 30-40% as 3000 staff are tested, by request, the costs of which would amount to $450,000. Entering the plant alone would take an hour as workers go single file and have their temperatures taken.

Mexico has one of the worst coronavirus outbreaks in the world, but the U.S. government and its auto industry are exerting pressure on the country to reopen factories.

As of Sunday, Mexico had 90,644 confirmed cases of COVID-19 and reported 9,930 deaths, according to the Johns Hopkins Coronavirus Resource Center.

LEA Price Action

On Friday, Lear Corp. shares closed 1.47% lower at $106.05.

Image Credit: Courtesy of Lear Corporation.

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