Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

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Thread: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

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    Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand


    Ford Motor Co. has hired a second supplier to provide steel frames for its best-selling F-150
    truck, hoping to better meet delivery demands amid a parts shortage from its current supplier,
    according to people familiar with the matter.


    The Dearborn, Mich., auto maker is struggling to get as many F-150s on dealer lots as originally
    planned because its supplier, Mexico-based Metalsa S.A, is having trouble building enough frames
    to keep pace with production needs, according to the people.

    The frame shortage has been ongoing for months and continues to stifle production at Ford’s
    two pickup plants at a time when light-truck demand—juiced by low gas prices—is running at
    a 10-year high.

    To fill the gap, Ford has tapped Livonia, Mich.-based supplier Tower International to build the
    additional frames, which are expected to become available in October, people familiar with the
    plans say.


    Meanwhile, the auto maker has been shipping frames to its factories by truck rather than rail
    to get them there faster but at a higher cost, these people say.

    With not enough frames, Ford has had to cancel planned overtime, and at times, temporarily
    halt the assembly line during regular shift work as plant employees wait for more frame deliveries
    to arrive, the people say.

    In a statement, Ford said it anticipates having full availability of the F-150 by the end of the third
    quarter. “We are at full production now, we are building stock at dealers and we continue to roll
    out additional derivatives,” the company said. “As with all vehicle launches, we are working
    closely with our suppliers to meet customer demand for the truck.”

    A Tower spokesman declined to comment but public filings show the parts supplier currently
    makes body structures for the F-series truck. Tower also builds frames for Ford’s Econoline
    van at its plant in Bellevue, Ohio—a facility that is currently undergoing a major expansion.
    more at Link......
    Dear Ford,
    The next time you arrange a single supplier for a critical path item, please ensure that the
    supplier can keep up. There's more at stake than squeezing out the lowest price...

    Good to see Inventory levels stabilizing, we're already half way through Q3 so August and
    September sales of F Series should keep strengthening, In July, it was only 6,000 behind
    GM's combined full sized truck sales.
    Last edited by jpd80; 08-07-2015 at 06:06 PM.

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    But but but... I thought the "aluminum" F-150 isn't in demand?
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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Gee, going to make it locally, in Livonia? Instead of Mexico?

    One thing. It appears Alan Mulally has left the building..
    Last edited by Neanderthal; 08-08-2015 at 03:35 PM.
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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by Neanderthal View Post
    Gee, going to make it locally, in Livonia? Instead of Mexico?

    One thing. It appears Mulally is gone.
    You might be right about Mulally. Costs just skyrocketed and will have a negative effect on Ford's next quarterly balance sheet. How can Ford drop the ball on their MOST important product? That's straight up poor strategy and management.

    Every day GM's "3-truck strategy" looks stronger than Ford's F-Series strategy.

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by Envoy4Life View Post
    But but but... I thought the "aluminum" F-150 isn't in demand?
    I'd just like to see ONE Ford launch without a supplier issue.


    But..... I guess that those stupid steel based trucks from GM aren't selling either.

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by bballr4567 View Post
    I'd just like to see ONE Ford launch without a supplier issue.


    But..... I guess that those stupid steel based trucks from GM aren't selling either.
    Ford has the worst product roll outs, and even Lincoln is plagued by them.

    I can't even begin to explain that. But what I can explain is that the new F-150 is going to see a huge uptick in sales when Ford gets their **** straight.
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    Hidden Content Originally Posted by Greg.Botts Hidden Content
    LOL at all the FORD fans in this thread thinking they got a one up. This is the Yukon Denali and trust me it's going to blow away the Navigator. Escalade is gunning for RR/Bentley level of interiors and beyond. I've talked to someone about this on another site that confirmed it Navigator isn't even being bench-marked at Cadillac too low for them.
    ^GOLD^

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Is this a "second" supplier. or a "new" supplier?

    I'm wondering why they need a second one when sales are down.
    Last edited by megeebee; 08-07-2015 at 09:51 PM.
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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    The F-150 frame issue just doesn't seem to be any big deal at all.
    The world isn't ending because Ford ships a few hundred frames by truck each month.


    By next month, Ford will have caught up with and surpassed total GM truck sales this year.

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by megeebee View Post
    Is this a "second" supplier. or a "new" supplier?

    I'm wondering why they need a second one when sales are down.
    Sales are down because there was no inventory, in order to build inventory Ford needs more frames than
    Metasa is supplying. Look at last month, dealerships began getting 15 F150s in decent numbers and combined
    F Series sales jumped from 55,000 in June to 66,000 last month. The real issue has been supplying the second
    plant as Kansas City which has around a 4,000 shortfall each month.

    Ford has said that Inventory won't be back until normal until the end of September, that means that Ford has
    been trading on higher transaction prices and less incentives - you can do that with a fresh product in restricted
    supply .. but not forever.

    The saving grace in Q2 qa the resula 2014 F150 stock, due to restricted supplies of the new truck, Ford
    was able to keep run out prices higher than normal - that's where the increased Average transaction prices
    compared to Q2 last year. Sure some '15 F150s were sold but not as many as people think. The real influence
    will come in the next two quarters.
    Last edited by jpd80; 08-07-2015 at 11:41 PM.

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by Neanderthal View Post
    Gee, going to make it locally, in Livonia? Instead of Mexico?

    One thing. It appears Mulally is gone.
    the frames don't come from Mexico... Metalsa took over Dana, the frames come from a plant in Elizabethtown, Ky.

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by megeebee View Post
    Is this a "second" supplier. or a "new" supplier?

    I'm wondering why they need a second one when sales are down.
    Metalsa and Magna were both suppliers prior to the 2015 model but then Ford chose a single supplier
    for 2015. There were a lot of changes required to make the new frames and unfortunately, Metalsa
    could not keep up. Ford was intending working weekends at both plants on top of full production,
    By now the estimate is 20,000 builds down on plan...

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by Envoy4Life View Post
    Ford has the worst product roll outs, and even Lincoln is plagued by them.

    I can't even begin to explain that. But what I can explain is that the new F-150 is going to see a huge uptick in sales when Ford gets their **** straight.
    This is a careless error on a critical part that should never have happened,
    the only saving grace was that the slow ramp up allowed Ford to capitalize
    on 2014 run out by not requiring anywhere as much incentive spend.

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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Nah, it ain't that simple.

    Ford is not 'failing' or 'suffering' or 'being held back' per se...... with F Series somehow because of too much success in total with the 2015 F150 or because Metalsa screwed up.

    Rather, it is much more likely about some kind of imbalance caused by perhaps.... better acceptance in some ways and less acceptance and adoption in others...... leading to various forms of misallocations both in front ( sales etc ) , and also in the supplier base in back.

    Simply put, a solid WAG would be something like - the actual market acceptances and results are not following the plan - ie Ford's plan was and or 'is' off.

    The frame supply issue is likely more about wanting to ( now ) reallocate and or trade off certain kinds of F150 frames for others while being 'unable' to do so somehow - within the existing arrangements.

    If you look across five or six zips.... pricing and availability including btw on the ground, would suggest that Ford, if they had a do over available, would have preferred to have programed in at least a few more mid to upper trim SuperCrews while trading that for less RC and SuperCabs.

    The tricky part is....... on a first pass only, appears........ if pricing is the only guide, that they would want to cut more out of RC and SuperCabs than add to SuperCrews.

    Which of course is nonsensical - because pricing is not the only thing .... hence the nosebleed and early big percentage discounting for some, and not for others.

    Does not appear regional / geographical distribution is in alignment either.

    Does not mean they have a major fail problem per se across the program - far from it. But they are out of sorts in a different way because reality - meaning all the good, the bad and the ugly seems to have really surprised them in a way they were not fully prepared for.

    And now they are forced to scramble to basically regroup and refocus the program.

    Compounding all this would be any ad hoc revisions if present for certain 2016 product - including 'frames' but not necessarily limited to just that although that may be the choke point - or the one in more public view....

    Perhaps..... small Fleet aka 'Fleetail' or whatever plus some of the big Fleets ie a recognized 'real' Fleet under the 'ole 5/15 Rules and such are off track some how. Which to be fair could also include again, better here and weaker there acceptances with the various Cab & Frame ( and option etc ) configurations available.

    Well, whatever is really happening in a gross or net sense does not appear to be going according to what was planned in a more detailed sense .

    So sure, we get the usual spin effort and attempt to focus only on the positives ( and with the extra shrillness and silliness tryin' to knock GM who, without a doubt, is benefiting the most from all this ) ..... but sooner or later, the rest of the story whatever that really means, is going to come out.

    Final thing of interest - do not so far, see where they are picking up fully the extra costs - never mind pushing the net delta ahead. And ditto that versus GM - seems like they have at best, a surprisingly weak form of the new truck premium going on - with some builds only as well.

    So essentially, nothing extra for all the extra high tech approaches..... which was at least in large part, part of the exercise to begin with,
    Last edited by AMERICA 123; 08-08-2015 at 01:24 AM.
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    Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by bballr4567 View Post
    I'd just like to see ONE Ford launch without a supplier issue.


    But..... I guess that those stupid steel based trucks from GM aren't selling either.
    Ford has had hiccups on launches, but hasn't GM and FCA as well? Think about it?

    Speaking from personal knowledge, the "supply chain" is severely stressed, we have been running most of our plants As much as possible, and the reason I don't say 24/7 is because we can't get ( or keep ) enough help, to utilize all of the equipment. I had lunch with someone at IHS the other day, ( which among other things studies this kind of stuff ) we are not an anomaly, this is a problem that is widespread throughout the industry. We are now actually going to extreme measures, using unique solutions just to "keep things moving" if you will.

    GM sold a lot more trucks than it made last month, how long can you keep that trend up?
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    Re: Ford Hires Second Supplier to Build Steel Frames for F-150 to Meet Demand

    Quote Originally Posted by AMERICA 123 View Post
    Nah, it ain't that simple.

    Ford is not 'failing' or 'suffering' or 'being held back' per se...... with F Series somehow because of too much success in total with the 2015 F150 or because Metalsa screwed up.

    Rather, it is much more likely about some kind of imbalance caused by perhaps.... better acceptance in some ways and less acceptance and adoption in others...... leading to various forms of misallocations both in front ( sales etc ) , and also in the supplier base in back.

    Simply put, a solid WAG would be something like - the actual market acceptances and results are not following the plan - ie Ford's plan was 'is' off.

    The frame supply issue is likely more about wanting to ( now ) reallocate and or trade off certain kinds of F150 frames for others while being 'unable' to do so somehow - within the existing arrangements.

    If you look across five or six zips.... pricing and availability including btw on the ground, would suggest that Ford, if they had a do over available, would have preferred to have programed in at least a few more mid to upper trim SuperCrews while trading that for less RC and SuperCabs.

    The tricky part is....... on a first pass only, appears........ if pricing is the only guide, that they would want to cut more out of RC and SuperCabs than add to SuperCrews.

    Which of course is nonsensical - because pricing is not the only thing .... hence the nosebleed and early big percentage discounting for some, and not for others.

    Does not appear regional / geographical distribution is in alignment either.

    Does not mean they have a major fail problem per se across the program - far from it. But they are out of sorts in a different way because reality - meaning all the good, the bad and the ugly seems to have really surprised them in a way they were not fully prepared for.

    And now they are forced to scramble to basically regroup and refocus the program.

    Compounding all this would be any ad hoc revisions if present for certain 2016 product - including 'frames' but not necessarily limited to just that although that may be the choke point - or the one in more public view....

    Perhaps..... small Fleet aka 'Fleetail' or whatever plus some of the big Fleets ie a recognized 'real' Fleet under the 'ole 5/15 Rules and such are off track some how. Which to be fair could also include again, better here and weaker there acceptances with the various Cab & Frame ( and option etc ) configurations available.

    Well, whatever is really happening in a gross or net sense does not appear to be going according to what was planned in a more detailed sense .

    So sure, we get the usual spin effort and attempt to focus only on the positives ( and with the extra shrillness and silliness tryin' to knock GM who, without a doubt, is benefiting the most from all this ) ..... but sooner or later, the rest of the story whatever that really means, is going to come out.

    Final thing of interest - do not so far, see where they are picking up fully the extra costs - never mind pushing the net delta ahead.


    What!?


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