Ford truck plant to shut for week
Jan 25, 2011 |
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By BRENT SNAVELY
Detroit Free Press Business Writer
A one-week shutdown at Ford's Dearborn Truck Plant is a symptom of a broader issue facing parts suppliers who are struggling to keep up with increased production demands as the industry recovers, Ford and industry sources said.
The 3,000 hourly and salaried workers at Ford's Dearborn Truck plant will be off this week because of a parts shortage affecting engine production for Ford's F-Series pickups at the company's engine plant in Brook Park, Ohio.
Although the Ohio plant isn't shut this week, Mike Gammella, president of UAW Local 1250 that represents the engine plant workers, said there have been sporadic one-day shutdowns because of parts shortages from a handful of suppliers.
The Brook Park plant makes a 3.7-liter V6 engine and a 3.5-liter turbocharged EcoBoost engine for Ford's pickups.
"Suppliers took a lot of capacity out to get through the downturn," said Ford spokesman Todd Nissen. "As volumes have increased for our new, high-volume products, suppliers have had some issues keeping up."
Both Nissen and the UAW declined to identify the suppliers or the exact parts.
Production of cars and trucks in North America increased 39% in 2010, said Michael Robinet, an analyst with IHS Automotive.
"There are specific commodities and components that are in very short supply these days," Robinet said.
Suppliers that make electric motors and wire harnesses as well as suppliers who make parts for high-volume, popular models are having the most problems.
This year, if industry sales volumes increase more than the expected 10% to 12%, there could be more parts shortages, said Neil De Koker, CEO of the Original Equipment Supplies Association.
"The vehicle manufacturers have been very concerned about a number of suppliers," De Koker said. "It's a miracle that we haven't seen more assembly lines shut down."
So far, General Motors and Chrysler say they have been unaffected.
Aside from a snowstorm in December that closed a Canadian highway and temporarily shut several GM factories, there have been no recent parts shortages at GM, said spokesman Dan Flores.
GM, Flores said, has worked hard to give suppliers adequate advance warning of production increases.
Chrysler also isn't dealing with any parts shortages, said spokeswoman Jodi Tinson.
Gammella said Ford could avoid some of its parts shortages if it made more parts in its own plants.
He also said the issue, known in the industry as insourcing, is likely to be a top priority for the UAW during this year's contract talks. The UAW's four-year contract with Ford, GM and Chrysler expires Sept. 14.
"If we were making these parts in our plants, we wouldn't be experiencing these issues," Gammella said.
Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com
