Ford Suspending F-150 Production Due to Plant Fire

After a major fire at a major Ford part manufacturing plant in Michigan, Ford Motor Company has now put to a halt the production of the F-150, displacing workers.

The crisis began last Wednesday when an explosion and fire knocked out production at a plant run by Meridian Lightweight Technologies in Eaton Rapids, Michigan, about 80 miles from Detroit. It happened Wednesday, May 2 and created a shortage of die-cast parts.

Ford already has shut its F-150 plant in Kansas City, Missouri, and halted production of its Super Duty trucks in OH and Kentucky.

All told, 7,600 workers at the two plants will be directly impacted, 4,000 of them in Dearborn, 3,600 in Kansas City. Other auto brands are also affected, however only Ford has halted the production of it's most successful truck - the legendary F-150. More ominously, analysts are saying that delays could continue for several weeks. The company used to supply components to the famous automakers namely, Ford Motor Co., Fiat Chrysler Automobiles NV and General Motors Co.

"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", Joe Hinrichs, executive vice president and president of Ford's Global Operations, said in a statement.

The letter urges workers to keep their personal contact information updated so they can get updates as information becomes available. But the Super Duty will continue to be made at Ford's OH assembly plant in Avon Lake. Morgan Stanley recently estimated that the F-150 alone may be worth more than the whole company.

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Ford sold 287,000 units of the F-Series trucks during the first four months of 2018, an increase of 4% in comparison with a year ago.

That's because there was a fire at a supplier's plant last week.

The F-150 is built only at the two sites, and there is no scheduled date for the reopening the Kansas City Plant.

Ivan Drury, senior manager of industry analysis at Edmunds, said it's too early to determine how the production delay will affect sales.

The paper noted that the cause of the fire remains unknown.

(Copyright © 2015. All Rights Reserved.)
 
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