Question is, how long will it last?
Ford has just announced that production of its has stopped due to a fire from a main supplier. The stoppage will affect production plants in Kansas City, Missouri, Dearborn, Michigan, and Louisville, Kentucky. For the time being, however, Ford says Super Duty production will continue at its Ohio Assembly Plant in Avon Lake. The cause of this production stoppage was due to a fire at a parts supplier, which occurred on May 2. This supplier provided various die-cast components.
“This is a fluid situation, but we are working closely with our supplier partners to do everything we can to limit the impact on our production,” said Joe Hinrichs, executive vice president and president of Global Operations. Ford did not provide a specific time frame as to when the production stoppage will come to an end, but it is expected to last for several days, at the very least. The Kansas City facility employs some 3,600 people while the plant in Michigan has 4,000 employees. The parts supplier itself, Meridian Magnesium Factory, suffered from a serious fire and resulting explosion which has caused serious damage. Company management said it’s working to get back up and running as quickly as possible.
Of all Ford’s current vehicles, the F-150 and Super Duty are probably the worst ones to be negatively affected by a supplier issue. Remember, , and if the production shutdown lasts for more than a week then Ford’s quarterly earnings will likely take a hit. Fortunately, most Ford dealerships already have enough inventory to last them until production gets underway again.