Analysis: Parts Shortage Could Cost Ford Severely
May 14, 2018—Depending on how fast Ford can find backup parts to replace those lost in a recent factory fire, the financial damage to the automaker could be significant, according to Forbes analysis.
The main reason Ford should be concerned, according to Forbes, is the fact that its most valuable product, the F-Series pickup, is being affected by the ongoing parts shortage. Consider the numbers at play: last month Ford built nearly 60,000 pickups at a pair of midwest plants, and, at an average price of around $47,500, a month’s worth of pickup production equals nearly $2.9 billion in revenue to Ford.
F-Series pickups are Ford’s most profitable vehicle and the source of the majority of the OEM’s profit. For the moment, though, Ford feels it may be able to make up whatever losses are caused by the pickup truck shut down before the end of the year.
Ford recently decided to close its F-Series assembly lines in Kansas City and in Dearborn, Mich.; reopening those lines will hinge on how quickly the OEM is able to find an alternate source for the affected parts. In theory, Ford could make up for its lost production by scheduling overtime or extra assembly line shifts once parts shipments are restored.