Ford Expected to Temporarily Lay Off Several Thousand Workers At Michigan Pickup Truck Plant -- Sources
May 08 2018 - 5:07PM
Dow Jones News
By Christina Rogers
Ford Motor Co. expects temporarily to lay off several thousand
workers at a Michigan factory that assembles its top-selling F-150
pickup truck after a fire last week damaged the premises of a parts
supplier, people familiar with the matter said.
The blaze, which occurred Friday at a Michigan plant operated by
Meridian Lightweight Technologies, has already disrupted production
of Ford's pickup trucks at a factory in Missouri. Meridian is an
automotive-interiors supplier owned by China's Wanfeng Auto Holding
Group, which makes components for Ford and other car makers.
Ford said its F-150 factory in Dearborn, Mich., is expected to
run out of Meridian-supplied parts and halt production as early as
Wednesday, the people familiar with the matter said. They cautioned
that the situation was fluid and final decisions on exact timing
hadn't been made.
Ford said Monday that its other main F-150 plant, in Kansas
City, Mo., would be idled this week because certain parts are in
short supply after the fire.
The two plants, which together employ 7,600 people, could face
several weeks of down time as the auto maker seeks ways to make up
the parts shortfall, the people said.
The F-150 is Ford's best-selling vehicle and generates the bulk
of its global profit. A prolonged shutdown of the plants could dent
the company's second-quarter revenue and profit, said Jamie
Albertine, an auto analyst at Consumer Edge Research.
Mr. Albertine estimates the two plants combined produce some
10,000 to 15,000 F-150s a week, citing figures from AutoData Corp.
He said Ford dealers should have a few months of inventory on the
ground to prevent shortages in showrooms, but the company would
face cost pressures from paying workers during idle time and while
ramping back up to offset lost production.
The fire also disrupted production at a Fiat-Chrysler
Automobiles minivan plant in Windsor, Ontario, and a BMW
sport-utility factory in South Carolina, those companies said
Monday. BMW said Tuesday production has resumed. A Meridian
official said the company is "supporting its customers."
--Mike Colias contributed to this article.
(END) Dow Jones Newswires
May 08, 2018 17:52 ET (21:52 GMT)
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