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Japan Crisis Could Slam Ford Bottom Line

But impact likely less than facing Japanese makers.

by on Apr.12, 2011

The shortage of Japanese-made parts could hit Ford hard on the bottom line, the maker warns.

Ford Motor Co. has warned, in a government filing, that it expects to feel a significant impact from the Japanese auto industry meltdown due to ongoing parts shortages.

The crisis has already begun to affect the maker’s production and will soon disrupt operations, especially in Asia, the U.S. maker said in filing with the Securities and Exchange Commission.  That will likely lower financial results in the coming months, Ford declared.

“We could have to reduce or temporarily cease production of vehicles, which could adversely affect our and Ford Motor Credit Company’s financial condition and results of operations,” Ford stated.

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Nonetheless, the impact is likely to be less severe than that being felt by Japanese automakers such as Toyota and Nissan, who lost much of the last month’s production at their home plants and will be seeing further cuts in factories around the world in the weeks to come, industry analysts predict.

“We now expect that beginning in the last week of April and continuing into May, certain of our operations in the Asia-Pacific region (including certain of our joint venture operations) will be affected by shortages of components and vehicle kits as a result of the events in Japan,” the Ford filing stated. “Although this likely will require us and the affected joint venture affiliates to reduce or temporarily cease production of certain vehicles in the Asia-Pacific region, we do not expect this production disruption would have a material impact on our overall results.”


GM Adding Shift, Rehiring Workers

Ford puts 3,000 on temporary layoff due to parts shortage.

by on Jan.25, 2011

Growing demand from small businesses for heavy-duty pickups leads GM to add a third shift at its Flint plant.

General Motors plans to add a third shift at truck assembly plant in Flint, Mi. to build heavy-duty pickup trucks, largely for commercial customers – a move that should come as good news to 750 workers currently on layoff.

But 3,000 Ford workers at a plant near the company’s headquarters have gotten less positive news, learning they will be temporarily idled, next week, ironically because increasing demand has led to a shortage of key powertrain components.

Mark Reuss, GM President – North America, said the automaker is satisfied demand for the trucks is growing and there are ample customers for the heavy-duty trucks which, in turn, suggest there’s growing movement in the economy.

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“Adding a third shift is a response to customer demand for heavy-duty pickups, which most people use to tow, haul and plow,” said Mark Reuss.

Flint Assembly currently employs nearly 2,100 hourly and salaried employees and operates two production shifts. In 2010 the plant produced 115,000 trucks, the majority of them regular and crew-cab versions of the heavy-duty Silverado and Sierra. Last year, the plant added production of regular and crew-cab version of the light-duty Silverado.