Why Ford Has Stopped Production of America's Best-Selling Pickup

Why Ford Has Stopped Production of America's Best-Selling Pickup

Why Ford Has Stopped Production of America's Best-Selling Pickup

The fire, followed by a number of explosions, ripped through the northern part of the Meridian plant in Eaton Rapids, which makes instrument panel components, early on Wednesday last week (May 2).

General Motors Co said on Wednesday it has temporarily halted production of Chevrolet Express and GMC Savana full-size vans at its Wentzville, Missouri, plant because of parts shortages caused by the fire. Felker said Tuesday a decision on if the Dearborn Truck Plant with 4,000 worker will be idled will be made soon.

Officials at Ford confirmed that Meridian is the producer of "front bolster", which reinforces the engine at the point in which the radiator is attached on its F-150, Expedition, Navigator and Super Duty trucks.

One industry expert told NBC News if the halt in production lasts longer than a week, it could have a major impact.

The spokesman of Ford said in an interview,"This is an extremely fluid situation, we are working hard to get replacement parts".

The F-Series lineup, including F-150 and Super Duty trucks, is Ford's largest source of profits.

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Ford says one F-150 comes off the line every minute between the two plants. By the time the fire was extinguished, Meridian's facility was significantly damaged, preventing the company from stamping any new chassis components for the Ford F-Series lineup.

The same fire at Meridian in MI has already created a parts shortage at the Windsor Assembly Plant, and as a result, FCA has shortened shifts. With parts in short supply, Ford was forced to suspend F-150 production at the two plants that make the popular truck.

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

Ford said its annual guidance of adjusted EPS between $1.45 and $1.75 would still hold.

In a call with reporters Wednesday evening, Hinrichs said the company did not yet know the financial impact of the production shutdowns. The company is working with other suppliers to minimize the disruption.

The broader F-Series line-up, including Super Duty models, is Ford's most profitable vehicle, analysts estimating the company makes $10,000 or more on all but base models.

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