Ford Motor Suspends F-150 Truck Production At Two Assembly Plants

Ford Motor Suspends F-150 Truck Production At Two Assembly Plants

F-150 production has been suspended at the Ford plant in Claycomo, Missouri, after a fire at a parts supplier. It's a key profit generator for Ford. Meridian has other buildings in Eaton Rapids and another magnesium plant in Ontario, but it's unclear how much volume they can pick up, she said.

A prolonged issue with parts from Meridian Magnesium, the location of the fire, will crimp the lines at Ford factories in MI and Missouri. The F-150 pickup is Ford's best-selling model, as well as its most profitable.

Kentucky Truck Plant employs almost 7,600 full-time hourly workers, having added 2,000 for Super Duty production in conjunction with a 2017 investment of $900 million.

The good news for Ford is that dealer inventories are now 84 days on average, which will ensure supply for consumers at the retail level over the short term.

Fortunately for Ford, General Motors doesn't yet have new pickups in the USA markets, and Fiat Chrysler is just launching its F-150 competitor. It happened Wednesday, May 2 and created a shortage of die-cast parts.

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Ford acknowledged that it will take a short-term financial hit from the production stoppage, but reaffirmed its full-year guidance of earnings per share in the range of $1.45 to $1.70. The company is working with other suppliers to minimize the disruption. "We're working closely with the supplier to manage the situation and determine next steps".

A fire last week at an auto parts factory near Lansing is having an effect on production at the minivan assembly plant in Windsor and an engine plant in Essex. All told, Ford could lose production of 15,000 trucks per week if both Kansas City and Dearborn plants close.

Ford also said current inventory levels on dealer lots will satisfy demand for the F-150.

Ford expects to continue Super Duty production at a factory in Avon Lake, Ohio, near Cleveland. We don't know what the breakdown by model is for that number, but based on the current average sales flow - dealers around the country should be set for at least two months.

Rising interest rates could also bring people into showrooms sooner rather than later, Krebs said.

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