A Fire At Auto Parts Supply Firm in Michigan Disrupts Production at Ford Motor Company (NYSE:F), and Bayerische Motoren Werke AG (ETR:BMW)

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Ford Motor Company (NYSE:F) is facing the shortage of auto parts at its production facilities due to a fire that broke out at an auto parts company based in Michigan on May 2, 2018. The trouble seems to now have spread to more companies like Bayerische Motoren Werke AG (ETR:BMW), Fiat Chrysler Automobiles (BIT:FCA), and General Motors Company (NYSE:GM). It is too early to predict the damage but dealers may run short of the vehicles.

Ford is worst hit by the spares shortage. The company has laid off almost 7,600 workers due to a reduction in production on account of spares shortage. The company has lowered the production of top selling F series pickup truck in America.

General Motors has also halted the production of full size vans at its Missouri plant. Fiat Chrysler has also stopped the production of Pacifica mini van at its manufacturing facility based in Windsor, Ontario.

BMW is expecting some production cuts at its SUV facility situated close to Spartanburg, South Carolina.

Meridian Magnesium Products of America factory’s main plant based in Eaton Rapids, Michigan was severely damaged in a fire The auto maker supplies almost two thirds of its products to Ford. Other vehicles manufacturers also source auto parts from this facility because of the light weight of the products and complying that broke out on May 2, 2018. with government regulations with respect to fuel efficiency.

Badly hit by the shortage of auto parts, Ford staged a decision to halt the production of Super Duty pick up and F-150 vehicles at its manufacturing facilities spanning Michigan, Missouri, and Kentucky. The company announced temporary layoffs at Dearborn and Kansas City. The company will relocate the workers based at Kentucky to large Lincoln facility.


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President and executive vice president (Global Operations) of Ford, Mr. Joe Hinrichs said the parts supply shortage is temporary. The company is working with the suppliers to limit the impact on its production.

According to Mr. Joe, the dealerships still offer ample selection of vehicles for the customers for immediate purchase. The existing will last for 84 days.

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