Ford suspending F-150 production at Dearborn plant due to parts shortage


Ford suspending F-150 production at Dearborn plant due to parts shortage

Ford has two plants, one in Dearborn, Michigan, and a second in Kansas City, Missouri that makes the F-150. So, the impact of the fire is nearly certain to be felt on Ford's bottom line when it reports its second-quarter earnings, especially if the shutdown lasts more than a matter of days.

The supplier issue has also halted Ford Super Duty production in Kentucky, although that plant will continue with a reduced workforce to produce other Ford products.

In the first four months of the year, Ford sold 287,295 F-Series pick-ups over the course of the first four months of the year, up 4.1%.

"The F-Series platform is critically important to Ford", said Emmanuel Rosner, an analyst with Guggenheim Securities LLC. The company is relying on SUVs and trucks like the F-150 to drive its bottom line, ditching slow-selling cars that generate little in the way of profits. GM shares were off 0.8 percent.

"It's a very fluid situation", said spokesperson Kelli Felker.

BMW said it's working to find other sources for magnesium parts but until supplies stabilize, it won't build as many X5 and X6 SUVs.

Ford says it's working with suppliers to limit the impact on production and expects any affect to be short-term. Die-cast magnesium alloy part is lightweight and complicated part.

That's because of a parts shortage caused by the fire. "This isn't like picking up screws at the hardware store". In its aftermath, the fire ripped through the North American auto industry, reports the Detroit Free Press, but hit Ford hardest. Just-in-time deliveries of parts directly to assembly lines boosts efficiency and save costs.

Fiat Chrysler (FCAU) confirmed that production of the Pacifica SUV at its plant in Windsor, Ontario, had been affected as a result of the supply disruption. The fire and series of explosions on May 2 injured two people. But the auto makers can make up for downtime, she said.

Ford had announced Tuesday the fire had halted production of its best-selling F-150 light duty truck across three factories, idling some 7,600 workers.

Earlier this week, Ford sent home close to 3,600 workers at its plant in Kansas City.

Ford said it now has an 84-day supply of the trucks but do not have a time frame as to when the supply line will be restored.



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