| DETROIT, April 27
DETROIT, April 27 Ford does not expect any
production disruptions due to a shortage of a rare nylon resin
used in auto manufacturing, its chief financial officer said on
"We think we are going to get through this without having
any issues," Ford CFO Bob Shanks said during Ford's
first-quarter earnings conference call.
When Ford Motor Co announced its first-quarter net
profit of $1.40 billion [ID: L2E8FR1KB] on Friday, it said in a
statement, "The company has not had and does not expect any
production disruptions" due to the lack of the nylon resin
Shanks said Ford has been in daily contact with its
suppliers about the shortage of an obscure nylon resin called
PA-12 that is used in making most cars and trucks worldwide.
The global supply of PA-12, used in several industries
including auto manufacturing, was already stretched thin before
the explosion at an Evonik Industries AG plant in
Marl, Germany on March 31. That blast killed two Evonik workers.
Evonik is a major producer of PA-12, which is used as a
coating for tubes, fuel lines and braking systems.
The world's three other major producers of PA-do not have
spare material on hand or enough output capacity to make up for
Two weeks ago, TI Automotive CEO Bill Kozyra
sounded the alarm about the shortage in a letter to customers
warning of a serious threat to auto production within weeks.
Since then, Ford and other automakers have been working with
suppliers and chemical companies to find alternative materials
to keep production going.
Those efforts appear to be successful , said David Lalain,
director of business development for the Automotive Industry
Ford has found suitable alternative materials and Shanks
said he did not foresee a drop in quality.
"For the consumer, they are not going to have any issues in
terms of safety or durability or anything of that sort," said
Earlier this week, executives from several auto suppliers
including Eaton Corp and Delphi Automotive said
the auto industry will be able to keep production humming along.
And Mike Jackson, chief executive and chairman of the No. 1
U.S. auto dealership group AutoNation Inc, said he was
told by the major automakers that the supply of cars and trucks
would not be curtailed.
"On the resin, all manufacturers have confirmed their
production plan for the next six weeks, no disruption. And they
say, while there are challenges, they expect to have them all
resolved before it becomes an issue," said Jackson on the
AutoNation earnings conference call.
"The auto industry has shown that we're somewhat resilient,"