Ford may close two of its plants due to lack of engines

Ford may close two of its plants due to lack of engines

July 10, 2020 0 By autotimesnews

Ford Motor Co. may have to stop production in factories in the United States due to a lack of engines from Mexico.

For the first time, Reuters reported on a supply problem and possible closure of enterprises, citing comments made Thursday by US Ambassador to Mexico Christopher Landau during a meeting organized by the Atlantic Council.

“In connection with COVID-19, the state of Chihuahua in Mexico has limited employee attendance to 50%. In this region, we have several suppliers. At our 100% US plants, this is not sustainable. Although we do not expect any impact on production next week, we continue to work with government officials on ways to safely and constructively resume the remaining production, ”said Kumar Galhotra, president of Ford Americas.

We are talking about engines manufactured in Mexico for Ford cars. Landau said he was discussing this issue with an unnamed senior Ford executive on Wednesday: “They say they will start closing plants in the United States next week if they don’t start working,” Landau said.

Three automakers in Detroit halted production in North America for eight weeks, from late March to mid-May, to help stop the spread of COVID-19. The simultaneous restart of all three automakers was a historic moment in the industry, and, according to experts, this will be a serious test, given the possible disruptions in the global supply chain and the need to prevent the spread of COVID-19 at assembly sites.

Ford, along with its competitors, resumed production on a reduced schedule. But within five weeks, the automaker announced it would return to full, pre-coronavirus production, ahead of schedule. All three automakers are in a hurry to replenish near-end stocks at dealerships, as consumer demand for new cars recovered more than expected.