Ford suspends F-150 production after supplier fire

General Motors shut down production of its full-size van in Wentzville Missouri due to the Meridian fire

Due to a fire at a supplier in Michigan, Ford Motor Co. suspended F-Series Super Duty production at Kentucky Truck Plant in Louisville. Production at Mercedes, Fiat Chrysler and General Motors was also disrupted.

Ford says they are suspending production of the F-150 at the Dearborn Truck Plant. The other assembly plant where the F-150 is built, in Dearborn, Mich., will also face temporary lay-offs, affecting approximately 4,000 workers.

The incident has reportedly affected production at a number of other assembly plants, including some run by Ford and Mercedes.

Ford has said it doesn't know how long it will be before it can resume production of the F-150, as it scrambles to find a supplier who can provide it with the parts it needs. According to the analyst calculation, the enterprise value of the F series trucks is greater than that of the Ford as a whole.

The shutdown could last several weeks.

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It's all because of a May 2 fire that severely damaged the main plant at the Meridian Magnesium Products of America factory in Eaton Rapids, Michigan, near Lansing that makes structural parts, about one-third of which goes to Ford.

Hau Thai-Tang, executive vice president of Product Development and Purchasing at Ford, said in his own video that Ford was notified of the fire about six hours after it occurred.

Meridian makes aluminum and magnesium structural components at four plants in North America. Multiple automakers have turned to Meridian to produce parts made of the lightweight metal as they try to shed pounds to meet government fuel efficiency standards. The plant manufactures the front structure that holds the radiator. Jonas recently said the F-150 alone may be worth more than the whole company amid a slump in Ford shares. "It's a full team effort and we're confident that any impacts will be short term".

The F-Series pickups have always been the top-selling vehicles in the U.S. - and for Ford, they're a license to print money.

Stock prices have risen since Ford announced the cutback on the truck. It's a key profit generator for Ford.

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F-150 trucks are a multibillion dollar enterprise.

The two-day shutdown is due to a production slowdown south of the border.

At the end of April, Ford had an 84-days supply of F-Series pickups, according to AutoData.

Ford may stop production of its best-selling and highly profitable F-150 pickup truck at two factories after a fire at a supplier. "But when you have a vehicle that comprises a quarter of your company's sales, any production disruption is going to cause some consternation".

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