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Ford Idles Crossover Plant Because of Transmission Part Shortage

Ford was forced to idle its Oakville, Ontario, plant because of a shortage of transmission parts because of labor violence at one of Ford's Indian suppliers.

Indian supplier Rico Auto Industries in the city of Gurgaon is the supplier causing the shortages. The company's labor troubles began on October 18 when an employee was killed during a clash between two groups of employees, according to the Business Standard, a leading business newspaper in India.

Due to the labor troubles, Ford will lose production of several thousand vehicles at its Oakville plant, said Ford spokesman Todd Nissen. The plant builds the Ford Edge, Ford Flex, Lincoln MKT, and Lincoln MKX.

Nissen said Ford is monitoring the situation and other factories may be affected by it. He did not specify which other factories.

In Canada, around 3000 of Ford's Canadian Auto Workers will be affected by the shutdown this week according to CAW union local president Gary Beck. The shutdown comes during negotiations regarding contract changes to lower Ford's Canadian labor costs.