DETROIT — A fire that damaged a Michigan auto parts supply factory is causing production problems at Ford, Fiat Chrysler, BMW and General Motors, but it’s too soon to tell yet whether dealers will run short of vehicles.
So far Ford has been hit hardest by parts shortages. The company has had to temporarily lay off 7,600 workers as it cuts production of the F-Series pickup truck, the top-selling vehicle in America.
But General Motors has been forced to stop producing full-size vans at a factory in Missouri, and production of Fiat Chrysler’s Pacifica minivan has been curtailed in Windsor, Ontario. BMW says it expects some production interruptions at its SUV plant near Spartanburg, South Carolina.
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. 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.
On Wednesday, Ford announced that it was suspending F-150 and Super Duty pickup production in Kansas City, Missouri; Dearborn, Michigan; and Louisville, Kentucky. The temporary layoffs took place in Kansas City and Dearborn, while workers in Louisville, Kentucky, who made the Super Duty, will switch to large Lincoln and Ford SUVs that also are made at the plant.
Ford says it’s working with suppliers to limit the impact on production. “We’re confident that any impacts will be short-term,” Joe Hinrichs, executive vice president and president of Global Operations, said in a statement.
The company said it still has an ample selection of trucks at U.S. dealerships. At the current sales rate, Ford Motor Co. has enough trucks to last 84 days.
The company said that the parts shortage and production cuts will have a short-term impact on earnings.
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