Ford Halts F-150 Truck Production Due to Parts Shortage

Ford F-Series truck production halted amid parts shortage

Fire at local plant could force thousands out of jobs

It's the best selling vehicle in the country, and now that Ford is in the middle of an $11 billion cost-cutting initiative, shutting down the F-150 plants a devastating blow.

Auto manufacturers, including Ford, book revenue as soon as a vehicle is shipped from the factory; as a result, the disruption could eventually hit company earnings.

The production stoppage comes after an explosion and fire at Meridian Magnesium Products of America's factory in Easton Rapids, Mich., cut off the supply of components used in the F-150's instrument panel.

Ford has enough of the die-cast magnesium parts on the shelf to keep production running at Dearborn through Thursday of this week, according to a letter from the plant's union chief received by employees.

A fire at automotive supplier Meridian Magnesium Products of America in Eaton Rapids, Michigan on May 2 is the cause for the shortage. The company is meeting continuously to find a solution to replace and manufacturer (sic) parts that were lost due to the fire at Meridian. 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. It doesn't know how long that production problem will last either.

The F-150 is built only at those two sites.

Ford F-Series truck production halted amid parts shortage
Ford may halt F-Series production after supplier fire

F-150 production has been suspended at the Ford plant in Claycomo, Missouri, after a fire at a parts supplier.

Ford said it's working to mitigate USA production losses and that its three-month supply of F-Series trucks in dealers' inventories should offset shortages in the near term, but if the shutdown lasts several weeks, which reportedly could be the case, specific versions of the F-150 would become scarce. A Ford spokeswoman said on Wednesday the automaker is working closely with the supplier to get production restarted, but declined to provide details. "Our global supply chain team continues to monitor the situation".

Hackett has also said Ford will accelerate investments in self-driving vehicles, electric cars and other technology. The plant continued to produce Chevrolet Colorado and GMC Canyon mid-size pickups.

"They may or may not receive wages during the furlough period", says Pellathy.

The cause of the fire at the Meridian plant isn't known.

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