Parts Supplier Cuts Shipments To Ford

Pricing dispute action causes Ford to halt production at Mexico plant.

Collins & Aikman, the auto parts supplier, has stopped deliveries to Ford Motor Co. over a pricing dispute, according to a report Wednesday in the Wall Street Journal. The cut off in supplies resulted in Ford having to temporarily halt production at an assembly plant in Mexico.

The pricing dispute involved several million dollars worth of instrument panels, carpeting and other interior plastic parts, said an unnamed person familiar with the dispute, the paper reported. Although Ford will not pull its existing business from Collins & Aikman, they will not make future purchases.

The pricing dispute began several weeks ago when Collins & Aikman asked Ford for price increases, including an increase to cover the rising costs of plastics used in the parts.

The shutdown of Ford's Mexico plant stopped production on about 400 vehicles, according to people familiar with the dispute. After the plant was shut, due to Collins & Aikman's action, Ford agreed to pay the additional amount the parts supplier was demanding.

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