Ford Takes Steps to Ensure Supply Continuity and Availability of Products for Customers Despite Fire at Parts Supplier
May 09 2018 - 5:33PM
Business Wire
- Ford Motor Company said it is working
to mitigate U.S. production losses after a May 2 fire at a parts
supplier
- Parts shortages resulting from the fire
at Meridian Magnesium Products of America’s plant supply issue is
currently impacting F-150 and Super Duty production at Ford’s
Kansas City Assembly, Dearborn Truck and Kentucky Truck plants
- Ford accounts for less than a third of
the volume of output from the affected Meridian plant
Ford Motor Company is working with its supply base to offset
impacts of a fire that occurred at one of the company’s suppliers
last week and is affecting the production of certain vehicles, due
to a shortage of die-cast components.
“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.”
Current impacts from the supply shortage, included:
- F-150 production is suspended at Kansas
City (Mo.) Assembly Plant and will also be suspended at the
Dearborn (Mich) Truck Plant at the end of the afternoon shift
tonight
- Ford F-Series Super Duty production is
down at Kentucky Truck Plant in Louisville. Ford expects Super Duty
production to continue at Ohio Assembly Plant in Avon Lake
While the production shortage is expected to have an adverse
impact on the company’s near term results, the company’s guidance
of delivering an adjusted EPS in the range of $1.45 to $1.701 for
the full year is unchanged.
About Ford Motor Company
Ford Motor Company is a global company based in Dearborn,
Michigan. The company designs, manufactures, markets and services a
full line of Ford cars, trucks, SUVs, electrified vehicles and
Lincoln luxury vehicles, provides financial services through Ford
Motor Credit Company and is pursuing leadership positions in
electrification, autonomous vehicles and mobility solutions. Ford
employs approximately 202,000 people worldwide. For more
information regarding Ford, its products and Ford Motor Credit
Company, please visit www.corporate.ford.com.
1 Adjusted earnings per share is a non-GAAP financial
measure. Ford does not provide guidance on an earnings per share
basis, the comparable GAAP financial measure. Ford’s earnings per
share in 2018 will include potentially significant special items
that have not yet occurred and are difficult to predict with
reasonable certainty prior to year-end, including pension and OPEB
remeasurement gains and losses.
Cautionary Note of Forward-Looking
Statements
Statements included or incorporated by reference herein may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are based on expectations, forecasts, and assumptions by
our management and involve a number of risks, uncertainties, and
other factors that could cause actual results to differ materially
from those stated, including, without limitation:
- Ford’s long-term competitiveness
depends on the successful execution of fitness actions;
- Industry sales volume, particularly in
the United States, Europe, or China, could decline if there is a
financial crisis, recession, or significant geopolitical
event;
- Ford’s new and existing products and
mobility services are subject to market acceptance;
- Ford’s results are dependent on sales
of larger, more profitable vehicles, particularly in the United
States;
- Ford may face increased price
competition resulting from industry excess capacity, currency
fluctuations, or other factors;
- Fluctuations in commodity prices,
foreign currency exchange rates, and interest rates can have a
significant effect on results;
- With a global footprint, Ford’s results
could be adversely affected by economic, geopolitical,
protectionist trade policies, or other events;
- Ford’s production, as well as Ford’s
suppliers’ production, could be disrupted by labor disputes,
natural or man-made disasters, financial distress, production
difficulties, or other factors;
- Ford’s ability to maintain a
competitive cost structure could be affected by labor or other
constraints;
- Pension and other postretirement
liabilities could adversely affect Ford’s liquidity and financial
condition;
- Economic and demographic experience for
pension and other postretirement benefit plans (e.g., discount
rates or investment returns) could be worse than Ford has
assumed;
- Ford’s vehicles could be affected by
defects that result in delays in new model launches, recall
campaigns, or increased warranty costs;
- Safety, emissions, fuel economy, and
other regulations affecting Ford may become more stringent;
- Ford could experience unusual or
significant litigation, governmental investigations, or adverse
publicity arising out of alleged defects in products, perceived
environmental impacts, or otherwise;
- Ford’s receipt of government incentives
could be subject to reduction, termination, or clawback;
- Operational systems, security systems,
and vehicles could be affected by cyber incidents;
- Ford Credit’s access to debt,
securitization, or derivative markets around the world at
competitive rates or in sufficient amounts could be affected by
credit rating downgrades, market volatility, market disruption,
regulatory requirements, or other factors;
- Ford Credit could experience
higher-than-expected credit losses, lower-than-anticipated residual
values, or higher-than-expected return volumes for leased
vehicles;
- Ford Credit could face increased
competition from banks, financial institutions, or other third
parties seeking to increase their share of financing Ford vehicles;
and
- Ford Credit could be subject to new or
increased credit regulations, consumer or data protection
regulations, or other regulations.
We cannot be certain that any expectation, forecast, or
assumption made in preparing forward-looking statements will prove
accurate, or that any projection will be realized. It is to be
expected that there may be differences between projected and actual
results. Our forward-looking statements speak only as of the date
of their initial issuance, and we do not undertake any obligation
to update or revise publicly any forward-looking statement, whether
as a result of new information, future events, or otherwise. For
additional discussion, see “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2017, as
updated by subsequent Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
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