Ford says Asian operations may face part shortages

AP News
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Posted: Apr 11, 2011 7:35 PM

Ford Motor Co. says that its Asia-Pacific operations may have to slow or stop production later this month because of parts shortages from Japan.

Ford has had to temporarily halt operations in the U.S. and Europe because of shortages, but this was the first word of possible production cuts in Asia. Ford has 13 plants in its Asia-Pacific region, including eight assembly plants in Australia, Thailand, Taiwan, Vietnam, India, the Philippines and China.

Ford doesn't have any production facilities in Japan but, like other automakers, does source parts from suppliers that were hurt by the March 11 earthquake and tsunami.

Ford said in a regulatory filing Monday that it expects its operations will be affected beginning the last week of April and into May. It didn't say which factories or for how long, but said it doesn't expect any production disruption to have a big impact on the company's overall financial results. It is pursuing other sources for some of its supply.

However, if the supply of a key material or part from Japan is disrupted and it can't find an alternate, Ford said it may have to reduce or temporarily halt vehicle production. That could hurt both the company's results and Ford Motor Credit Co.'s financial condition, it added.