Ford's 2020 Explorer Hasn't Left the Woods Just Yet, Report Claims

Plagued by reports of manufacturing defects and post-production emergency surgery at Flat Rock Assembly, Ford’s Chicago-built 2020 Explorer and Lincoln Aviator platform mate are a weight placed on the shoulders (and career) of CEO Jim Hackett. It’s also weighing down the company’s stock, analysts claim.

While the automaker said earlier this month that Explorer supply was on the upswing, with new vehicles now shipping directly to dealers, it seems Bill Shatner hasn’t shot all of the gremlins off the wing of this flight.

According to Bloomberg, not all new Explorers are making the trip directly from Chicago Assembly to various dealers. A shipment of 2,500 Explorers recently turned up at Flat Rock for post-production fixes, sources claim, and some dealers are now tasked with fully baking the pies they’ve been handed before turning them over to customers.

While the equally new Ford Escape has, um, escaped the problems afflicting the brand’s new midsizers, the importance of the Explorer line to the company’s bottom line — plus the hefty load of cash that went into upgrading the Chicago plant — is something Hackett might have to address during a third-quarter earnings report expected Wednesday. The plant upgrade, along with other initiatives, was meant to mend long-standing problems at Chicago Assembly. At least in terms of product, that didn’t occur.

While Ford claims no knowledge of it, sources say “roving groups of workers” are intimidating other employees within the bowels of Chicago Assembly, hampering production and leading to mistakes that must be fixed offsite. Ford is waiting for UAW-affiliated General Motors workers to ratify a new contract agreement before bargaining can begin.

The botched launch hasn’t helped the brand’s stock price recover from the Mark Fields days, either, something Hackett’s survival is staked on. The company’s shares have fallen 15 percent since the CEO switch. Indeed, Hackett, joined by Chairman Bill Ford Jr, was all over the Explorer launch, putting his face on the new model. At the time, the new Explorer served as proof of the company’s — and the plant’s — turnaround.

“This Explorer issue is going to be a big negative for the quarter,” said Morningstar analyst David Whiston. “It’s a viciously competitive market and you don’t want to be missing one of your big hitters.”

According analysts’ predictions, the previous quarter will not bear good financial news. Profit and revenue are both expected to slip, something the Explorer and Aviator can take credit for.

[Image: Ford]