The profit for the second quarter of the USA based automobile company is about to encounter a blow after the plant, located in Michigan faced a fire. The production of the prime components at the plant of Chinese auto parts have depleted remarkably that will hurt the models of Daimler AG and Ford Motor Co.
The production of the truck F-150 has been ceased by Ford at the Dearborn, Michigan factory after stunting the production of the plant in Kansas City, which is known to produce profitable and popular models.
The production of F-series by Ford, which is the Super Duty pickup, has also been suspended for the time being at the factory of Kentucky. However, it continues to roll the production in the plant of Ohio. Though it will hurt the profits for the 2nd quarter, Ford is looking forward to getting over the same in the upcoming quarters.
Joe Hinrichs, the President for Global Operations of Ford stated that the impact of the fire incident will not be stretched beyond the second quarter. He further added that the analysts believe the sales will also not drop and the production will also be brought under control in due time.
The effects of the part shortage are also stretched to factories of Fiat Chrysler Automobiles NV and General Motors Co. This will also compel Daimler to cease the production of the SUV from Mercedes Benz.
The revenue of Ford reaches around $40 million annually, which is more than any other leading organizations. This is fetched from the profits of the F-series, playing a crucial part in the business of Ford.
Due to the presence of magnesium, the fire became uncontrollable, causing the damage. George Asher, the meridian plant manager also stated that the dies used for the stamping of the parts will be transported to the plays in the UK and Ontario.