A fire has knocked out production at one of Ford’s key suppliers, forcing Ford to shut down production for its best-selling and most profitable vehicle the F-150 pickup truck.
The suspension means that almost 4,000 of Ford’s workers from the Dearborn Truck Plant will be laid off, alongside another 3,600 of its workers from Kansas City, who have already been asked to stay home.
Ford spokesperson Mark Truby has stated that “Our goal is to get production up and running as soon as possible.”
The fire in question, took place, on May 2nd at Meridian Magnesium Products of America plant in Eaton Rapids, Michigan, and has already impacted production for the Fiat Chrysler, but for Ford whose US sales centres around trucks and SUV’s, a month long shut down puts it in a particularly sensitive position.
With each transaction costing roughly $47,500, a month’s worth of delays easily amounts to nearly $2.9 Billion dollars in revenue. And also put’s General Motor’s Chevrolet Silverado and GMC Sierra pickups at a marked advantage.
Not only that but workers at both plants are unlikely to be paid until production is back in full swing.