From panic to triumph: Behind the scenes of Ford’s F-150 restart
DEARBORN, Mich. — What if Facebook or Nike couldn’t do business for more than a week?
“The whole world would shut down,” said Joe Hinrichs, president of global operations for Ford.
So, when production of the FSeries pickup line halted — with annual revenue of $40 billion, exceeding that of Facebook, Nike and most other modern corporate rock stars — leaders of the iconic automaker got creative.
Ford restarted assembly lines Friday for the F-150, the nation’s best-selling vehicle and the company’s financial lifeline, after a two-week disruption. Hinrichs expected it to be much longer.
The story of the recovery involves Ford crews sleeping in tents at the site of a fire at a key supplier’s factory in rural Michigan as they waited to retrieve critical tools. They strapped together a new supply chain involving five countries.
The Dearborn-based automaker needed to stem the bleeding caused by a parts disruption that would lead to layoffs of 7,600 workers in Michigan, Kentucky and Missouri.
F-Series trucks generate more than $100 million a day in revenue. Nearly $4.2 million an hour.
“We were highly motivated,” Hinrichs said.
The crisis for Ford was such that the company secured the pricey services of the world’s largest cargo plane, previously used to transport skimmer boats from France to the Gulf of Mexico during the Deepwater Horizon oil spill in 2010.
Ford won’t disclose what it spent. Whatever the bill, it had no choice.
“The Antonov An124 was a military transport built for the Soviet armed forces. The aircraft is huge and would be very, very expensive to use,” said Bob van der Linden, curator of air transportation for the Smithsonian National Air and Space Museum.
“But it’s worth it for Ford to get that F-150 assembly line running again,” he said. “That’s the nation’s best-selling vehicle and you can’t have it come to a screeching halt.”
Ford pulled together a team that arrived within hours of the fire May 2 at Meridian Magnesium of America south of Lansing, Mich. They watched the flames rise, since water can’t be used to put out fire at a magnesium plant. Water only fuels the flame.
The blaze dramatically disrupted the North American auto industry by creating a parts shortage for Ford, General Motors, Fiat Chrysler and Mercedes. It triggered unplanned layoffs throughout the U.S. On May 9, it shut down F-150 pickup production completely.
Ford was most affected, relying on the factory for specialized parts used in the F-Series, Expedition, Explorer and Navigator, as well as Lincoln vehicles.
Ford, Meridian and others worked to get tools out and find manufacturing alternatives by coordinating with partners and competitors in the U.S., Canada, the United Kingdom, Germany and China.
“When something happens and there’s a disruption in supply, at that point, all hands are on deck. Everybody is your friend. Even your competitors are your friends,” said Eric Showalter of Troy, former CEO of Meridian.
“Our biggest concern was capacity for magnesium products,” Hinrichs said. “It’s a highly specialized metal. Can we get magnesium capacity quickly?”
The plant is the only site in North America capable of supplying Ford at the rate needed. Parts built there include the front bolster that reinforces the engine where the radiator is attached, the third-row seat cushion pan and the crossbar beam known as the instrument panel.
Ford worked to line up trucks, cranes and the aircraft. The Russian aircraft landed in Columbus, Ohio, Hinrichs said. “They needed a specific airport. It took quite the coordination. Time was of the essence.”