Ford Suspending F-150 Production Due to Plant Fire
11 May, 2018, 04:31 | Author: Shannon Aguilar
Ford expects to continue Super Duty production at a factory in Avon Lake, Ohio, near Cleveland.
The shutdown could last several weeks. According to the company, at some point we will have an interruption in production. Besides Ford Motor Company, BMW, General Motors, Mercedes-Benz were affected by the fire.
Ford sold 287,000 units of the F-Series trucks during the first four months of 2018, an increase of 4% in comparison with past year.
Ford says it's working with suppliers to limit the impact on production. It generated $41 billion in sales previous year, about 28% of total revenue. Ford's lead over the No. 2 Chevy Silverado, owned by GM (NYSE: GM) and No.3 Dodge Ram, owned by Fiat Chrysler (NYSE: FCAU) may be the single most important edge Ford has in the American market. "We are working hard to get replacement parts". In Ford's case, the plant, located in Eaton Rapids, Michigan, produces seat components for the F-150 and Super Duty, as well as the Expedition, Navigator and MKT.
Hinrichs told the Detroit Free Press, however, "We have to rebuild the whole supply chain". "It's really a day-to-day, hour-to-hour situation". If production is back up and running in the projected time frame, they won't have issues with shortages.
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The F-150 is a brand at Ford that drives profits. "This isn't like picking up screws at the hardware store".
The F-Series also accounts for a third of all cars and trucks that Ford builds in North America.
Meridian's Eaton Rapids factory supplies lightweight cast-metal parts for global automakers, which are using more materials such as magnesium and aluminum to reduce weight and improve fuel efficiency.
Depending on how severely the parts shortage affects Ford, competitors may be able to entice truck shoppers with increased incentives. This would be a temporary halt of all production of the nation's bestselling vehicle. Two people were injured in the fire, and the plant's roof was destroyed in the process. More than 70 percent of SUV output is for export.
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