Ford recovers quickly from explosion

By Staff -- Purchasing, 3/11/1999

The explosion February 1 at Ford's Rouge complex near Dearborn, Mich., only put the facility's six plants out of commission for a week. The explosion, which investigators say was caused by a gas buildup inside a boiler, killed two workers and injured 30 others.

The complex makes Mustangs as well as parts and engines used by other Ford plants, including those at Wixom, Mich., and St. Thomas, Ont., where production was seriously slowed, affecting the company's purchase of parts and materials from other suppliers as well.

But according to Lloyd Hansen, controller for Ford's marketing and sales division, "There will be some effect on first-quarter profitability, but it's not going to be huge." He expects the total financial impact on Ford's first quarter to be less than $100 million, with insurance covering some of the loss.

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