Ford Earnings Could Be Hurt by Japan Earthquake
In a filing late Monday with the Securities and Exchange Commission, the automaker said that "should the supply of a key material or component from Japan be disrupted and an alternate supply not be available, we could have to reduce or temporarily cease production of vehicles, which could adversely affect our and Ford Motor Credit Company's financial condition and results of operations."
Earlier this month, the company said it had taken potential parts shortages into account, both as it scheduled previously planned down weeks and as part of regular production planning process to match supply to current demand. US production is a bit more secure, but a number of joint ventures in the Asian region are not.
"We now expect that beginning in the last week of April and continuing into May, certain of our operations in the Asia-Pacific region (including certain of our joint venture operations) will be affected by shortages of components and vehicle kits as a result of the events in Japan. Although this likely will require us and the affected joint venture affiliates to reduce or temporarily cease production of certain vehicles in the Asia-Pacific region, we do not expect this production disruption would have a material impact on our overall results,” Ford said.
The carmaker has also stated it is working had to find other suppliers and sources of parts: “We are working closely with those suppliers to assess their production and shipping capabilities and to minimize any disruptions. We also are pursuing other sources of supply as necessary and practicable."
At the moment, the only impact felt by its customers has been that some paint colors have not been available.