A Message from President & CEO Ken Ito on COVID-19 (March 25, 2020)

Dear Associates,

Thank you for your patience and understanding as we face the challenges COVID-19 brings to our lives. What we are facing now is unlike anything we have seen before. There is much we don’t know and cannot predict. Even during the Great Recession, we were able to prepare for the challenges we faced, because we had been through economic downturns before.

While we cannot know what is ahead of us, this we are sure of: DENSO and its associates have faced difficult times before and we can do so again, together. Our commitment to you remains the same—we are focused on supporting you through this uncertain time and ensuring DENSO as a company can endure the extended slowdown caused by COVID-19.

Below, I am sharing details about what we know, and how we plan to approach operations for the next week.

What We Know

• COVID-19 is affecting our region to varying degrees.
• This week, we shut down most of our operations for cleaning and to adjust to customer volumes in response to COVID-19.
• We continue to work with local governments and customers to make the right decision in every situation.
• In some cases, this means we run some mass production, but in every case we’re supporting aftermarket and service parts needs.
• Even where the COVID-19 impact is higher, we continue to run service and aftermarket and service parts. We do not do this to increase our sales; we do this to support society in a time of crisis. The government has declared that aftermarket and service parts are essential.  People, including first responders, health care providers, and others, need reliable transportation and access to parts if vehicles break down. Our communities still need transportation to get essentials like groceries and medical care. Cars continue to be an important part of our daily lives and DENSO parts need to be available.
• Even as we produce these parts to support society, we’re committed to providing a safe working environment.
• This week, Governor Whitmer announced a “stay home, stay safe” order for Michigan, meaning residents must remain at home except for certain circumstances.
• Customers throughout the region have dramatically reduced orders in response to rapid changes in the economy.

What is Next

We are committed to protecting jobs for an uncertain length of time, and we need to adjust compensation to ensure we can survive an extended shutdown.

Below is our approach to operations and pay for the week of March 30.

Operations

• We must continue to provide service and repair parts per federal guidelines.
• As our customers define critical manufacturing, we will adjust our schedule and approach to meet their needs. Our customers’ decisions will affect our operations.

Hourly Associate and Hourly Temporary Pay

• Not required to work, or unable to work from home: You will be paid 32 hours at your normal rate. That is four days of pay for the week of March 30.*
• Required to work on-site: Leaders will notify you if you are required on-site. You will be paid normal wages, in addition to a premium of ~$30/day) for any time worked onsite.** Normal attendance rules apply.
• Working from home: Work with your leader on a work from home plan. You will be paid your regular hourly rate for all hours worked, with a minimum of 32 hours.

*DENSO associates with paid time off (PTO) can choose to supplement this partial payment with PTO, otherwise the time will be recorded as unpaid time off without penalty.  

**Premium will be paid one week after normal paychecks. We apologize, but we need to manually process this premium bonus due to payroll software limitations. This premium bonus is approximately 20% or more premium for most associates.

Salaried Associate Pay

• All salaried associates will receive straight time pay.
• Required to work on-site: Your leader will inform you if you are required onsite.
• Not required on-site: Work with your leader on a work from home plan. You will receive your regular pay.

Co-ops and interns will be paid according to same guidelines above, based on whether salaried or hourly.

Associates should continue to check-in with their leader to understand additional changes.

The situation is changing day by day. We will continue to update you openly and honestly as we navigate the challenges ahead. Our priority is to ensure not only your physical safety, but also your economic security.

Together, we can get through this.

Ken Ito

President & CEO

DENSO in North America