Ford Motor Company will be continuing the production of its F-Series pickup trucks, ending the assembly line shut downs at its two most important plants that lasted for more than a week.
Going back to full production will take time as the company needs to re-establish manufacturing of critical components from a supplier.
The production will first resume on Friday at the automaker’s facility in Dearborn, Michigan. Meanwhile, the production of its F-Series Super Duty truck in Louisville, Kentucky, will go back online on Monday.
Last week, Ford has stopped the production of its F-Series due to the lack of critical components from its supplier.
The plant of Meridan Lightweight Technologies, Ford’s supplier, in Michigan suffered an extensive damage due to an explosion and fire.
Ford along with other car companies were forced to suspend production at some U.S. plants while seeking for an alternate source for components.
The automaker has lost the production of 70,000 to 80,000 F-150 pickups. Due to the company shutting down assembly lines at its Kansas and Dearborn plants.
Ford has also stopped the production of its F-Series Super Duty trucks in its Louisville plant.
According to Ford, the financial result of the company for second quarter will take a hit. However, the exact cost will remain to be seen.
Meanwhile, Ford has reaffirmed the company’s guidance for full-year earnings.
With the inventory of F-Series of more than 80 days, Ford dealers have not witnessed a big fall in the number of pickups in stock as the production was suspended.
The automaker is expected to make up for the lost inventory in the coming months through running extra shifts.
Ford Prepares for its Autonomous Vehicle Program
The automaker is already preparing for a scaled deployment of its Autonomous Vehicle program, which will be happening on 2021.
However, as Ford is not making enough money now, its cost-cutting plans may not be enough for the company to earn a higher earnings multiple.
According to analysts, the automaker has been trimming its production portfolio and doubling down most of its profitable segments.
Ford is also dedicated to delivering improvements in China and other underperforming global markets, the analyst added.
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