Ford stops all production of F-Series pickup, maintains earnings guidance

Irving Hamilton
May 10, 2018

The shutdown happens just as Ford hoped to boost F-150 demand with the addition of a new diesel model. But Ford appears to be the hardest hit, especially considering the booming demand for its full-size pickup which has been the nation's best-selling motor vehicle for decades, almost 900,000 F-150s sold a year ago.

The components shortage has also prompted Ford to stop production of the F-Series Super Duty pickup at its production plant in Louisville, Kentucky.

Those shutdowns could last for several weeks.

However the F-150 has been the best selling United States vehicle by any manufacturer for more than 40 years.

A major fire at Meridian Magnesium Products in Eaton Rapids, Mich., on May 2 created an unavoidable disruption.

The Detroit Free Press reports the truck side of Ford's Kansas City (Mo.) Assembly Plant shut down this week because of the parts shortage, idling about 3,600 workers, with no date set for reopening it. Ford is mulling whether to shut down the Dearborn Truck Plant in MI, which employs 4,000 workers.

Ford has about an 84-day supply of the F-Series truck in dealers' inventories, according to the company.

The spokesman of Ford said in an interview,"This is an extremely fluid situation, we are working hard to get replacement parts". The plant supplies other automakers as well, but so far only one - Fiat Chrysler - has reported an impact on production.

SC Strikes Down UP Law Allowing Ex-CMs To Keep Government Bunglows
State Assembly which which allows former CMs and ministers official bungalows and staff at public expense. The Supreme Court's verdict came on a petition filed by NGO Lok Prahari against laws enacted by the U.P.

All told, 7,600 workers at the two plants will be directly impacted, 4,000 of them in Dearborn, 3,600 in Kansas City. These are the only two plants that build the F-150. The truck line, including F-250 and other larger models, hauls in about $40 billion in annual revenue, exceeding the annual sales of companies such as Facebook and Nike.

Still, the F-Series is so important to Ford that Albertine and Rosner are considering adjusting earnings projections for the automaker once the full effect of the supplier fire is known. The plant continued to produce Chevrolet Colorado and GMC Canyon mid-size pickups.

It did not say how long van production will be idled.

Meridian, in a statement released Wednesday, said the local fire marshal has been able to access the plant and the investigation continues.

"They are in all-hands-on-deck mode at Ford and the supplier trying to get things going again at a good rate", auto trader analyst Michelle Krebs said.

Meridian, owned by Chinese supplier Wanfeng Auto Holding Group, also provides parts to Toyota Motor Corp and Tesla Inc among others, according to the websites of Meridian and Wanfeng.

Meridian, which makes aluminum and magnesium structural components at four plants in North America, could not be reached immediately for comment. Automakers use magnesium parts to cut weight in vehicles, and improve fuel economy.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER