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2009 Ford Flex

Violent Labor Disputes Puts Ford’s Crossover Production On Hold

October 23, 2009
By Scott Evans
Photography by Courtesy of Ford

2010 Lincoln Mkt With Ecoboost
There's hardly a faster way to stop a production line than a parts shortage, and it's a headache Ford is dealing with right now. Violent labor disputes at a supplier on the other side of the planet have Ford's Oakville, Ontario, Canada crossover plant on hold for at least a week.

2009 Ford Edge
The trouble is at a supplier in India by the name of Rico Auto Industries. Apparently, workers at their plant in Gurgaon have been having issues for the past few weeks and the unrest turned violent on October 18, leading to the death of one employee as two groups of workers clashed according to Indian business newspaper the Business Standard. The unrest appears to have started over the suspension of 16 employees for "indiscipline."

2009 Ford Flex
Predictably, the unrest has led to a serious drop in productivity and the death brought it to a halt, which is starving Ford of transmission parts for its Ford Edge and Flex and Lincoln MKX and MKT crossovers. The lack of parts has led Ford to shut down the Oakville factory next week, which company spokesman Todd Nissen says will cost the company "several thousand" units of production. Ford is monitoring the situation and says that other plants could be affected as well. Roughly 3000 Canadian Ford employees will stay home next week while the plant is idled.

Ford is just one company feeling the pain, though. According to the Business Standard, some 70 factories have already been affected by a one-day strike called this week. The plant also supplies Indian-owned Jaguar and Land Rover amongst others.

Source: Automotive News (Subscription required), The Wall Street Journal


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