Ford supplier Meridian Magnesium Products has been hit by a fire at a Michigan (Plymouth) facility that has resulted in a shortage of die-cast components parts that has halted production of the Ford F-150 pickup.
Ford is the main OEM casualty of the resultant disruption to parts production, but BMW and FCA are also reported to be adjusting production schedules.
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The best-selling Ford F-150 is built at two Ford plants in the US – Kansas City and Dearborn.
Production of the pickup at Ford’s Kansas City plant was halted first and then production at the Dearborn truck plant stopped after that yesterday (9th).
“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,” said Joe Hinrichs, executive vice president and president of Global Operations. “It’s a full team effort and we’re confident that any impacts will be short term. The good news is we have strong inventories of our best-selling F-Series pickups and other vehicles, and customers won’t have a problem finding the model they want.”
Ford said that as well as impacting F-150 output, F-Series Super Duty production is down at the Kentucky Truck Plant in Louisville. However, Ford expects Super Duty production to continue at Ohio Assembly Plant in Avon Lake,
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By GlobalDataMedia reports in the US note that disruption for Ford in the production of its best-selling vehicle could seriously affect the bottom line for Q2.
While the production shortage is expected to have an adverse impact on the company’s near term results, Ford said the company’s guidance of delivering an adjusted EPS in the range of $1.45 to $1.701 for the full year is unchanged.
The cause of the Meridian fire, which occurred on May 2 at ‘Plant 3’, is unknown, but despite the damage to the 200,000-plus square-foot facility, only two people were injured, according to reports. The Lansing State Journal reports that the north end of Meridian Magnesium’s main plant caught fire at ‘about 1:30 a.m. May 2 and its roof was destroyed by a series of explosions’.
Chinese-owned Meridian Magnesium Products describes itself as ‘making the world’s leading supplier of innovative lightweight cast metal solutions for the transportation industry’.
Meridian is a supplier in North America for the magnesium radiator support structure that holds radiators on Ford trucks.
Meridian Magnesium Products of America was acquired by Wanfeng Auto Holdings Group in 2013.
‘Re-open in four months’
Local media reports say the company is planning to rebuild the damaged buildings. Eaton Rapids Fire Chief Roger McNutt told the Lansing State Journal that Meridian Magnesium Products of America intends to have its entire complex rebuilt and reopened in four months.
McNutt also said Meridian Magnesium recently hired a crew of about 300 people to remove charred debris from the north end of the main plant. The report added that Plants 4 and 5 within Meridian Magnesium’s complex at 2001 Industrial Drive are open and have employees working inside them, according to McNutt. McNutt added the southwest end of the main plant reopened Tuesday.
See also: Magnesium in car production – a weighting game
