Ford stops F-150 production due to parts shortage

Ford stops F-150 production due to parts shortage

The Detroit Free Pressreports the truck side of Ford's Kansas City (Mo.) Assembly Plant shut down this week because of the parts shortage, idling about 3,600 workers, with no date set for reopening it. Ford is mulling whether to shut down the Dearborn Truck Plant in MI, which employs 4,000 workers.

FBN's Jeff Flock on Ford halting production of the F-150 truck. The automaker's other source of the popular F-150, in Dearborn, Michigan, may go down this week, said the person, who asked not to be identified discussing speculative matters.

The F-Series pickups are the best-selling vehicle in the United States and generate most of Ford's profits.

But the company temporarily shut down production of the truck after a fire at a supplier's plant in MI last week. The vehicle generated $41 billion in revenue past year, about 28 percent of total sales and the lion's share of its profits.

Ford shares were down slightly in after-hours trade, at $11.19.


Automotive News also reports that Mercedes-Benz has canceled production shifts in certain areas of its plant in Vance, Ala., in light of a shortage of cockpit components, while BMW said production of its X5crossover was briefly affected.

"This is a fluid situation", Joe Hinrichs, president of global operations at Ford said in a statement on Wednesday. "We are working hard to get replacement parts".

"There's not a lot of this type of supplier around that has capacity to pick up that kind of volume", said Kristin Dziczek, an economist and labor expert at the Center for Automotive Research.

The company told employees that they should expect to return to work at its plants in Dearborn, Michigan and outside of Kansas City, Missouri on May 18, a Ford spokesperson said on Friday. Ford is also working on getting production up at other factories. He said Ford should be able to make up the lost production later in the year by running overtime.

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