Ford to Shut Canada Plant as Indian Strike Cuts Parts Supply

By Harichandan Arakali

Oct. 24 (Bloomberg) — Ford Motor Co. said it will shut a Canadian factory for a week as a labor strike at its Indian supplier resulted in a shortage of components.

Workers at Rico Auto Industries Ltd. near New Delhi have been striking since Sept. 21 after 16 of their colleagues were suspended for indiscipline, the Mint newspaper reported today. Ford’s plant at Oakville, Ontario will halt production starting Oct. 26 and may arrange “other contingency plans,” Todd Nissen, a spokesman at the Dearborn, Michigan-based company said by telephone.

“I would say we hope it’s just one week, but because it’s a fairly fluid situation, we would need to wait and see,” Nissen said. “They are a significant supplier of transmission components.”

Delivery of “several thousand” units may be delayed at Ford’s Oakville factory, which builds vehicles including Ford Edge and Lincoln MKX, Nissen said. Maruti Suzuki India Ltd., India’s biggest carmaker, said on Oct. 1 that production was “marginally” hurt because of the strike.

Rico manufactures fuel systems, cylinder head covers, clutch assembly and brake discs, according to its Web site. The Gurgaon, Haryana-based company’s Managing Director Arvind Kapur, wasn’t available to comment, while Suresh Gaur, leader of the labor union involved in the protest, didn’t answer phone calls.

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