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

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

A fire that damaged a MI auto parts supply factory is causing production problems at Ford, Fiat Chrysler, BMW and General Motors, but it's too soon to tell yet whether dealers will run short of vehicles.

In a call with reporters Wednesday evening, Hinrichs said the company did not yet know the financial impact of the production shutdowns.

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

The F-150 is produced only at the Dearborn and Kansas City plants. "It's the timing that could be really poor because the FCA has the Ram on the market and GM will have two new pickups on the market this fall". AutoData reports Ford had an 84-day supply of F-Series trucks at the end of April, giving plenty of leeway in the supply chain. Line workers will still get paid, but at a reduced rate. The company does not expect to lose sales due to shutdown and expect to make up the production over time. The automaker is working hard to find a source of replacement parts, and parts supplier Meridian Magnesium is moving dies to other facilities, including one in Ontario, Canada.

The fire, whose cause is under investigation by local authorities, triggered smaller production disruptions to other vehicle manufacturers, including General Motors Co., Fiat Chrysler Automobiles, Daimler AG and BMW AG, the companies confirmed to Reuters on Wednesday.

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If a lack of instrument panel components is not resolved quickly, however, it could become very problematic for the automaker and especially painful for more than 7,600 workers who could be temporarily laid off until production of the F-Series resumes.

The production halt was caused by a fire May 2 at Meridian Magnesium Products in Eaton Rapids, Michigan.

A number of carmakers have since reported taking action to cope with parts shortages. It built 29,572 trucks in Kansas City and 31,482 in Dearborn last month.

Late model Ford F-150s on used vehicle lots may also get some extra attention in the weeks ahead. The company said they had canceled "production shifts in certain areas and adjusted production hours" while they "continue to assess the situation".

Ford shares rose six cents to $11.12 in early trading Thursday.