CLOSE
Listen to the calls to Eaton County Dispatch during the Meridian Magnesium fire. Laura Mazade, Lansing State Journal
Firefighters wait for magnesium to burn out at a fire in Meridian Magnesium Products of America in Eaton Rapids, Wednesday morning, May 2, 2018.
(Photo: Matthew Dae Smith, Lansing State Journal)
Ford said late Friday it hopes to resume production of F-150 pickups as soon as next Friday, May 18.
Kelli Felker, Ford spokeswoman, said, “Our teams are working tirelessly and around the clock to get our bestselling vehicle back into production as fast as possible. This situation remains very fluid.”
The automotive parts factory that caught fire this month, halting production of the best-selling Ford F-150 truck and leading to thousands of layoffs around the country, told the Free Press earlier Friday it hopes to have its plant running by June 1.
“We’re trying to have production up as soon as possible. It’s safe to say before June 1,” said Benjamin Wu, chief legal officer and public affairs director for Meridian Magnesium Products of America.
Ford said earlier in the week it is seeking to relocate needed equipment to supply key parts from Meridian operations in Ontario, but faces huge logistical challenges.
Meanwhile, Mercedes announced Friday it had run out of parts for its GLE, GLE Coupé and GLS, which are built in Vance, Ala. Mercedes canceled production of its SUV operations and reduced worker shifts because the factory had no more cockpit cross-members, which holds the dashboard, air conditioning unit and navigation system.
The May 2 fire at the factory in Eaton Rapids has led to dramatic production changes in Michigan, Kentucky, Missouri, Ohio, Alabama and Canada.
The story so far:
The plant, which employs about 400 nonunion workers, has about 250 people out of work. Meanwhile, Ford, General Motors, Fiat Chrysler, Mercedes and others have scrambled to figure out what to do as the automotive parts manufacturer is dealing with fire damage.
Emergency personnel work at the scene of a fire at Meridian Magnesium Products of America in Eaton Rapids, Wednesday morning, May 2, 2018.
(Photo: Matthew Dae Smith, Lansing State Journal)
Ford executives said during a shareholder call this week that Ford has worked aggressively to assist with reconstruction and repair, as well as salvaging tools needed to make the “front bolster,” which structurally reinforces the engine where the radiator is attached, for the F-150, Super Duty trucks, Expedition and Navigator. The supplier also makes a third-row seat cushion pan for the Ford Explorer, Ford Flex and the Lincoln MKT, and a lift gate for the MKT.
“Our die casting is down,” Wu said. “We have 15 total machines. We believe three or four machines are down permanently. But right now, roofing is the biggest issue. We don’t want to fire things up without following safety protocols. We think we can power up eight machines in the near term if the facility is repaired.”
F-150 trucks make up a multibillion-dollar brand that drives profits for the Dearborn-based automaker.
The Eaton Rapids factory built some 30% of its product for Ford alone, which is the top seller of trucks in North America with its F-Series, as well as Expedition and Navigator.
Wu said that while the die casting work may be stalled, secondary production related to painting and assembly is being done in the complex.
“We do magnesium high-pressure die casting,” he said. “We take molten magnesium and form it into a part. Our competitors are people who make steel parts, aluminum parts, carbon fiber parts and magnesium parts.”
A number of tools and dies have been shipped to affiliate companies, including the Meridian Lightweight Technologies plant in Strathroy, Ontario, Wu said.
“Our Canadian facility started building parts three days ago,” he said. “They’re building parts for us and then shipping them back to us so the machines in Michigan can do secondary finishing work.”
The plant, which was is owned by the China-based Wanfeng Auto Holding Group, is committed to keeping the industry disruption to a minimum, Wu said. Automakers are coordinating with each other and Meridian is working with competitors globally to fix this problem as soon as possible.
This week, Eaton Rapids city officials said the tiny community south of Lansing is making plans to assist families if the need arises as the situation stretches into its third workweek. City Manager Aaron Desentz said the community is planning for disruption of up to 120 days.
Automakers have told UAW and nonunion employees to plan on reduced schedules at least through May 17, as strategic decisions are made daily.
“We’re not going back to full capacity” by June 1, Wu said. “But we’ll be building parts for our customers. Essentially, by June 1 our customers should be getting parts globally. Our customers are coordinating. We’ll work with competitors to make sure the parts are running smoothly.”
Meanwhile, with 250 people out of work at the Meridian plant, company officials and their automaker clients wanted to emphasize that the company values its workers and plans to care for them.
“We are a self-insured company and we’re choosing to keep the health care and benefits for employees and their families for the next 30 days,” Wu said. “We’re going to pay for all that.”
By Monday, the supplier plans to recall another wave of employees to begin cleanup and repairs. Then employees not recalled will be paid their wages if they volunteer in the community, an idea put forth by plant manager George Asher.
“We want to pay it forward. If people go to United Way, Habitat for Humanity or any charity, and they can validate their time, we want to continue income streams,” Wu said. “We want to make sure all employee income streams will not be interrupted for the next 30 days, by which time we hope to be back to full operation.”
Contact Phoebe Wall Howard: 313-222-6512 or phoward@freepress.com. Follow her on Twitter @phoebesaid.
Read or Share this story: https://on.freep.com/2rAlM20