Fire at manufacturing facility affects automakers' supply chain  A fire in a major manufacturing facility in Howell, Michigan could affect the supply chain of some of the biggest carmakers in the world, according to a recently published report.

An auto supply factory caught fire on Wednesday afternoon at Magna Atreum on Grand River, according to Magna spokeswoman Tracy Fuerst. Fuerst said that firefighters were still clearing the building to ensure the safety of workers, and that the building's owners were "just waiting for them to let us known it is safe." According to reports, black smoke billowing from the building could be seen 20 miles away.

The 187,000 square foot manufacturing facility is a hotbed of automobile manufacturing, however, and a slowdown in output could hurt the supply chains of GM, Chrysler, Ford, Nissan and Mazda - all of which count on the facility to supply parts. "We just don't know too much right now," said Fuerst. As of Friday, the plant is still not running and it is unclear how much damage was done by the fire.

So far, the carmakers are waiting to hear about how much damage was done, but GM has already said the fire has slowed manufacturing at seven of its other plants, illustrating the interconnectedness of its supply chain. "We are working closely with the supplier to look at alternatives in an effort to resume production as quickly as possible," GM said in a statement.
Share To:

Strategic Sourceror

Post A Comment:

1 comments so far,Add yours

  1. Yes, fire is the main concern for a manufacturing unit, because it not only causes the destruction in the factory but also hampers the Distribution and logistic sector as well.
    It hampers the smooth flow of the products from the factories also hampers the production activity
    Let us hope that the fire which occurred in the factory in Magna has not caused much destruction

    ReplyDelete