Magnesium Supplier Fire Stops Ford F-150 Production

Ford F-Series truck production halted amid parts shortage

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. Ford is not the only company affected, as Meridian also supplies components to FCA and General Motors, but so far, neither of those companies have issued a statement on how this impacts their production plans.

What's more, F-150 production is unaffected at the automaker's Dearborn Truck Plant.

The company said it still has an ample selection of trucks at US dealerships and at the current sales rate has enough trucks to last 84 days.

The halt in production was caused by a May 2 fire at a MI based parts factory that rippled through the auto industry of North America, with Ford being the hardest hit.

Meridian's Eaton Rapids factory supplies lightweight cast metal parts for global automakers, which are using more lightweight materials such as magnesium and aluminum in recent years to reduce improve fuel efficiency. The company will likely be forced to call on another supplier for a time to get the parts it needs.

Meridian, which makes aluminum and magnesium structural components at four plants in North America, could not be reached immediately for comment.

A Ford spokeswoman told Insider via email that the situation was "fluid" and that decisions were being made "day by day", though she did not provide details about the projected length of the shutdown.

Ford has two plants, one in Dearborn, Michigan, and a second in Kansas City, Missouri that makes the F-150.

A fire last week at the Meridian Lightweight Technologies plant in MI has led to parts shortages at a number of carmakers' plants and dealers in the US.

"We are working closely with the supplier to manage the situation", a spokesperson for Ford explained to CNBC. Fiat Chrysler Automobiles and BMW have also curtailed production.

"Finally, we are working with ALL of our customers to resume operations and supply as soon as possible". The plant continued to produce Chevrolet Colorado and GMC Canyon mid-size pickups. It's not clear how long van production will be suspended, he said.

"They may or may not receive wages during the furlough period", says Pellathy.

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