Ford Motor Suspends F-150 Truck Production At Two Assembly Plants

13 May, 2018, 10:17 | Author: Terri Saunders
  • General Motors shut down production of its full-size van in Wentzville Missouri due to the Meridian fire

Despite Ford's statement to the contrary, auto industry experts told the Detroit Free Press that the fallout from the F-150 production halt could have wide-ranging negative effects.

The news comes as Ford becomes even more reliant on its popular F-Series trucks.

F-150 production at the Kansas City and Dearborn plants and Ford F-Series Super Duty production at the Louisville, Kentucky plant has been suspended, but Ford expects F-Series Super Duty production to continue at the OH assembly plant in Avon Lake.

The company would not confirm which parts Meridian supplied to its plant or what steps were being taken to source them from elsewhere.

The F-150 is a brand at Ford that drives profits.

Kentucky Truck Plant employs almost 7,600 full-time hourly workers, having added 2,000 for Super Duty production in conjunction with a 2017 investment of $900 million.

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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Ford could make up some of the lost production later in the year by running overtime. "They could add shifts to produce extra parts and get things going again". By the time the fire was extinguished, Meridian's facility was significantly damaged, preventing the company from stamping any new chassis components for the Ford F-Series lineup.

Meridian Magnesium Products plant is located at Eaton Rapids, Michigan.

Daimler and BMW acknowledged that they also had parts shortages from Meridian, resulting in minor production disruptions at their US plants in Alabama and SC. The shutdowns could cost Ford as much as 15,000 F-150s per week, according to James Albertine, an analyst with Consumer Edge Research.

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.

Ford fell 1.8 per cent to $11.07 at 12:07 p.m.in NY trading.

The Meridian plant in Eaton Rapids, Michigan, also supplies other automakers, but it's not clear yet how wide the impact will be.

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