Tuesday, 22 January, 2019

Ford to restart F-150 production after key supplier fire

Ford to resume some F-150 production Friday more plants online Monday Ford to restart F-150 production after key supplier fire
Jean Garcia | 17 May, 2018, 03:39

Ford Motor Co.is resuming production of F-150 and Super Duty trucks ahead of schedule at three assembly plants after a fire earlier this month at one of its supplier's facilities created a parts shortage.

The No. 2 USA automaker also said production would resume on Monday at a second F-150 plant in Kansas City, Missouri, as well as its F-series Super Duty truck plant in Louisville, Kentucky.

While production of the F-150 was down for a week, Ford says they started working immediately after the fire.

The May 2 inferno at the Meridian Magnesium plant in Eaton Rapids, Michigan, forced Ford to halt production of America's best-selling nameplate amid growing demand. The vehicle generated $41 billion in revenue previous year, about 28 percent of total sales and the lion's share of Ford's profits.

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While the situation isn't ideal, Ford is making the best of it and notes parts built in the United Kingdom will be flown to the United States daily until production in Eaton Rapids returns to pre-fire levels.

Despite the quick turnaround, Ford expects that the production stoppage would reduce profits by 12 to 14 cents per share in second quarter.

Joe Hinrichs, Ford's vice president of global operations, said the company will have to get "creative" to produce more Super Duty trucks to make up for the lost two weeks, including offering overtime to workers once the supply issues are fully resolved and the factory is running at a full clip.

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