Ford Motor Co. is shutting down the Dearborn Truck Plant on the finish of the second shift Wednesday, halting all F-150 production in all its crops after a fire destroyed half of a manufacturing unit supplying parts for the favored pickup truck.
The Dearborn automaker shuttered its Kansas City plant that produces the F-150 earlier this week because of elements shortages.
Fiat Chrysler Automobiles NV, General Motors Co. and BMW even have halted or adjusted production on some vehicles in consequence of the fire.
“This is a fluid situation, but we are working closely with our supplier and UAW partners to do everything we can to limit the impact on our production,” Joe Hinrichs, Ford’s government vice chairman and president of international operations, mentioned in a press release late Wednesday afternoon. “It’s a full team effort and we’re confident that any impacts will be short term.”
In addition to Ford F-Series pickups, production of the Chrysler Pacifica minivan and GMC Savana and Chevrolet Express full-size vans has been impacted because of supply-chain disruptions attributable to a May 2 fire on the Meridian Magnesium Products plant south of Lansing.
Meridian Magnesium Products, touted on the company website because the world’s largest provider of magnesium die-cast parts, is a unit of China’s Wanfeng Auto Holdings Group Co. Ltd. A Meridian consultant didn’t reply to a Detroit News request for remark.
GM spokeswoman Kimberly Carpenter advised The News on Wednesday the corporate has quickly halted production of its full-size vans at its Wentzville, Missouri, plant. The Wentzville plant is the one facility that builds the GMC Savana and Chevrolet Express vans.
“GM Wentzville will continue to produce the popular midsize Chevrolet Colorado and GMC Canyon,” Carpenter mentioned. “GM Purchasing and Supply Chain is working to resume full-size van production as quickly as possible.”
GM spokesman Jim Cain mentioned the Detroit automaker has a “sufficient stock (of full-size vans) on the ground and in-transit” and doesn’t anticipate a direct influence on retail prospects.
Ford’s Kansas City manufacturing unit employs three,600 employees. About four,000 employees are employed on the Dearborn plant.
The shutdowns might price Ford as a lot as 15,000 vehicles per week, in accordance with James Albertine, an analyst with Consumer Edge Research.
The automaker at present has 84 days’ provide of its F-Series vehicles.
F-Series pickups generate most of Ford’s earnings, and Morgan Stanley lately estimated the worth of the franchise as higher than that of all the firm. The truck line, together with F-250 and different bigger fashions, hauls in about $40 billion in annual income, exceeding the annual gross sales of corporations resembling Facebook Inc. and Nike Inc.
Fiat Chrysler spokeswoman Jodi Tinson mentioned production of the Chrysler Pacifica on the Windsor Assembly Plant has been “impacted” in consequence of the fire. “The company is adjusting production schedules as needed to minimize plant downtime, but will make up any lost production,” she mentioned. “FCA continues to work with the supplier’s team on recovery efforts.”
Meridian additionally provides different main automakers, together with Tesla Inc., BMW, Audi and Mercedes-Benz, in accordance with Meridian’s web site.
BMW mentioned Wednesday that production of its X5 and X6 will expertise “some interruptions” at its plant in Spartanburg, South Carolina, in consequence of the fire.
Michelle Krebs, analyst with business evaluation firm Cox Automotive, mentioned with out info on how lengthy Meridian will probably be down, it’s arduous to say what the influence of a production halt might be.
But the carmakers could make up for downtime. “They can add production, add shifts,” Krebs mentioned. “The supplier can, too.”
It’s unclear what number of hourly employees will probably be affected by the stoppage. The UAW’s 2015 collective bargaining agreements for the Detroit Three present supplemental pay for workers within the occasion of plant shutdowns.
Wire studies contributed
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