Ford CEO: Supply Situation in Japan 'Unfolding'
Managing the supply of parts from Japan in the wake of the earthquake last month is a complex and still-evolving process, Ford Motor Co Chief Executive Alan Mulally said Wednesday.
So far, the Japan crisis has had no material impact on Ford's earnings, Mulally told reporters in Detroit.
Plans to reduce production in Asia this month and next do not change that, he said, repeating a disclosure the automaker made in a securities filing this week.
"The supply chain is very complicated," Mulally said. "On one hand we are finding solution after solution. But also, we're still on a journey of discovery on some of the parts."
Ford and other automakers have had to temporarily idle plants and even restrict the use of some paint colors as they grapple with the shortfall in parts and supplies since the March 11 earthquake in Japan.
"You will see us continue to update everybody, because we are very transparent about what we learn," Mulally said. "But it's still unfolding."
Mulally also responded to outcries over the nearly 50 percent jump in his compensation for 2010, saying it was aligned "with the business performance of Ford."
Bob King, the president of the United Auto Workers union, has called Mulally's $26.5 million pay package "morally wrong."
(Reporting by Bernie Woodall, editing by Gerald E. McCormick)