Destruction of BorgWarner Plant by Tornado Anticipated to Impact Ford’s Earning Statement
In case you are considering a replacement 4WD pick-up truck, you may soon have trouble locating one as the BorgWarner plant producing transfer cases for Ford, Ram, and Toyota pickup trucks suffered heavy damage when a tornado on April 12, 2020. Although your dealer might not talk about a brand new vehicle’s transfer case with you, this component is very important that Ford Motor Company notified the Securities and Exchange Commission on Apr 17, 2020, of the destroyed plant.
In paperwork registered with the United States Securities and Exchange Commission, Ford says that it is too soon to advise just how the damaged plant will change the company’s desires to restart production or even the company’s financial well being. While some officials with Ford confirms that the manufacturing plant being not online will have no affect on the company’s upcoming Ford F-150 release, other executives with the auto giant say that it must be too soon to inform the impact that production of the transfer case may have around the truck’s potential. Representatives with BorgWarner say that they do not know when assembly can restart again or when BorgWarner will restore the production facility.
A lot of groups have predicted the revealing of the 2021 Ford F150 as the truck is supposed have a whole new style. The auto giant has hinted that the new truck will be larger than the last generation. Speculations continue the newer pickup truck could have a sizable information screen in the dash board that can provide several extra features. Despite earlier rumors, this F150 will more than likely be equipped with a 5-liter V8 engine that you could see in the present Ford F150. Insiders predicted that drivers would still need to hold off until 2022 for any F150 using the same quantity of HP as the 2021 Dodge Raptor. It is unknown when the damage in the tornado may drive back a whole new powerful engine getting seen in the Ford F150.
One of the difficulties with highly specialized parts like transfer cases is it usually takes lots of money to build and tool machines to assemble them. Consequently, some companies often distribute the expense between themselves, so having this factory ruined will likely have a ripple effect throughout the car industry.