Published: Thu, May 17, 2018
Markets | By Otis Pena

Ford to resume F-150 production after MI supplier fire

Ford to resume F-150 production after MI supplier fire

Ford Motor Co. plans to restart production of F-Series Super Duty trucks at Kentucky Truck Plant by Monday, putting about 2,700 hourly workers back on the job after a two-week layoff, the company said Wednesday.

Ford Motor Co.is resuming production of its F-150 pickup following a fire at a plant near Lansing where parts for the vehicle are made.

Production of the Expedition and Navigator SUVs continues without interruption at Louisville, Ford said.

The F-150 has been the best-selling vehicle in America for decades and any extended production delays would have had serious consequences for the automaker. The vehicle generated $41 billion in revenue a year ago, about 28 percent of total sales and the lion's share of Ford's profits. The plant makes structural parts with about one-third going to Ford.

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The fire at Meridian Magnesium Products in Eaton Rapids, Michigan meant that Ford couldn't get front-end bolsters for the Super Duty. After inspecting and repairing the dies, Ford said some portions of the Eaton Rapids facility were able to restart production.

In order to move the die, they enlisted the help of one of the largest cargo planes in the world - an Antonov An-124 - and the entire process only took 30 hours door-to-door.

Ford expects lost production of the F-Series will hurt Q2 EPS by $0.12-$0.14 but reaffirms its previous FY 2018 adjusted EPS guidance range of $1.45-$1.70.

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