Ford to resume F-Series pickup production


Ford is resuming production of its F-Series pickup trucks, ending assembly line shut downs at two of its most important plants that have lasted more than a week.

Returning to full production is likely to take some time as the automaker has scrambled to re-establish manufacturing of critical components from a supplier. Production will first resume at its Dearborn, Michigan, facility on Friday. On Monday, its Kansas City and F-Series Super Duty truck production in Louisville, Kentucky, will go back online.

The automaker suspended production of the F-Series last week due to a lack of critical components from its supplier Meridian Lightweight Technologies. Meridian’s plant in Eaton Rapids, Michigan, suffered extensive damage after an explosion and fire in early May.

Ford, along with BMW, Mercedes Benz and General Motors were forced to suspend or curb production at several U.S. plants while looking for an alternate source for components.

It’s estimated Ford lost the production of 70,000 to 80,000 F-150 pickups since shutting down assembly lines at plants in Kansas City and Dearborn. The company also suspended the building of its F-Series Super Duty trucks in Louisville.

Ford has said its financial results for the second quarter will take a hit, though the exact cost remains to be seen. Meanwhile, the automaker has reaffirmed its guidance for full-year earnings.

With F-Series inventory of more than 80 days, Ford dealers have not seen a big drop in the number of pickups in stock while production was stopped. Ford expects to make up the lost inventory in future months by running extra shifts.

Source : CNBC