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Business Briefs

Ford suspends F-150 production after supplier fire

| Wednesday, May 9, 2018, 8:15 p.m.
Ford F-150 trucks are displayed at a dealership in Glbert, Ariz., in 2011.
Associated Press
Ford F-150 trucks are displayed at a dealership in Glbert, Ariz., in 2011.

Ford was forced to temporarily halt production of its popular F-150 pickup truck Wednesday after a fire at a supplier last week caused a parts shortage.

Production at Ford's Dearborn, Mich., and Kansas City, Mo., truck plants will end following Wednesday's shift, the company said. It is unclear when production will resume. The May 2 fire at Meridian Magnesium Products of America has also led the company to shut down production of the F-Series Super Duty at its Kentucky truck plant. But the Super Duty will continue to be made at Ford's Ohio assembly plant in Avon Lake.

The F-Series accounts for more than one third of the total vehicles the company sells each month, according to Ford's April report, and it has remained the most popular pickup franchise in the United States for the past four decades.

More than 7,000 workers were temporarily laid off as a result of the suspensions, according to CNBC.

“This is a fluid situation, but we are working closely with our supplier partners to do everything we can to limit the impact on our production,” Joe Hinrichs, executive vice president and president of global operations, said in a statement Wednesday.

In a call with reporters Wednesday evening, Hinrichs said the company did not yet know the financial impact of the production shutdowns. But the company acknowledged that the shortage is expected to hurt its near-term results. Ford's stock fell nearly 2 percent by market closing.

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