Ford Motor Co., Fiat Chrysler Automobiles NV and General Motors Co. have discontinued or discontinued production on some vehicles after a fire destroyed parts of an Eaton Rapids auto part factory That supplied components to all three automakers
Production of the Ford F-Series pickups, minivans from Chrysler Pacifica and GMC Savana and Chevrolet Express full-size affected supply chain disruptions were fueled by a May 2 fire at the Meridian Magnesium Products plant Affected South of Lansing
GM spokeswoman Kimberly Carpenter told The Detroit News the company on Wednesday has temporarily halted production of its large vans at its facility in Wentzville, Missouri. The Wentzville plant is the only facility that builds the GMC Savana and Chevrolet Express vans.
"GM Wentzville will continue to produce the popular mid-size Chevrolet Colorado and GMC Canyon," said Carpenter. "GM's Purchasing and Supply Chain is working to resume full-scale van production as soon as possible."
Ford closed its F-150 factory in Kansas City earlier this week due to part shortage. The factory employs 3,600 workers. The car manufacturer's Dearborn Truck Plant, the other facility that makes the F-150, could be shut down this week.
The Dearborn plant employs about 4,000 workers. According to James Albertine, analyst at Consumer Edge Research, downtime could cost Ford up to 15,000 trucks a week. The Dearborn factory was still in operation on Wednesday morning.
The automaker currently has 84 days of its F-Series vehicles. If production is stopped, shutdown could take several weeks. Ford and the other automakers would have to manage inventories, so the company does not run out of options for customers.
F-Series pickups generate most of Ford's profits, and Morgan Stanley recently estimated the value of the franchise as greater than that of the entire company. The truck line, including the F-250 and other larger models, generates annual sales of approximately $ 40 billion, exceeding the annual sales of companies such as Facebook Inc. and Nike Inc.
"This is an extremely liquid situation "Kelli Felker, a Ford spokeswoman, said in an interview. "We work hard to get spare parts."
In a statement, Ford said it is working closely with Meridian to determine the next steps.
Fiat Chrysler spokeswoman Jodi Tinson confirmed the production of the Chrysler Pacifica at the Windsor Assembly The plant was "compromised" by the fire. "The company adjusts production schedules as needed to minimize plant downtime, but will make up for lost production," she said. "FCA continues to work with the vendor's team to drive recovery efforts."
Michelle Krebs, an analyst at industry analyst firm Cox Automotive, said without information about how long Meridian will fail. It's hard to say what impact a production interruption might have.
But automakers can compensate for downtime, she said. "You can add production, add layers," Krebs said. "The supplier can do that, too."
The UAW's 2015 collective agreements for the Detroit Three provide for additional compensation for employees in the event of plant shutdowns.
The supplier Meridian Magnesium Products is the world's largest manufacturer of magnesium components, according to the company's website. The company supplies magnesium die-cast components essential to vehicles. A Meridian representative did not immediately respond to a request from Detroit News for comment.
Wire reports contributed
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