Ford Says Japan Disaster Could Lower Financial Results

DETROIT - Ford Motor Co. warned the company's financial outlook could be hurt by the ongoing fallout from the March 11 Japanese earthquake and tsunami.

In a filing late Monday with the Securities and Exchange Commission, Ford said its financial outlook could be affected, reported The Detroit News.

Ford 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."

Ford said earlier this month it had taken into account potential parts shortages related to Japan both as it scheduled previously planned down weeks and as part of regular production planning process to match supply to current demand.

"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," Ford said. "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 it is still working to find other sources of parts.

"Although we have no production facilities in Japan, we do obtain materials and components from suppliers located in Japan, and 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," the company said.

The only immediate impact has been restrictions on ordering vehicles in certain paint colors for which an essential element is sourced from a plant in Japan.

Toyota Motor Corp. told dealers on Sunday that the company is producing cars and trucks at reduced levels in April and hasn't set its production schedule for May through July. They warned dealers that new vehicle may be in limited supply.