July 08, 2019

Fires Challenging the Automotive Industry

Shahzaib Khan

Download the full 2018 annual report here

Fires Challenging The Automotive Industry

In 2018, Resilinc EventWatch issued 380 alerts about fires or explosions at factories globally, making Factory Fire/Explosions second only to M&A in terms of supply chain events reported.

Fires Challenging Automotive Industry

The automotive industry was the hardest hit by fires and explosions, with 295 event alerts, 82 of which were mapped to Resilinc customers’ supplier sites and required an impact analysis. Media reports through the year highlighted the vulnerability of the automotive sector supply chain to fires. The May 2018 fire at Meridian Magnesium Products in Eaton Rapids, Michigan, USA was the most serious. While no fatalities and only two serious injuries occurred during the blaze, it caused Fiat Chrysler, GM, BMW, Mercedes Benz and Navistar to halt or adjust production schedules.

The impact was most severe for Ford, which had to completely shut down production of its most profitable product, the F-150 and Super Duty F-Series pickup trucks, at its Kansas City, Missouri, USA and Dearborn, Michigan, USA plants.

As automakers invest more in electric vehicles, industry observers point out that fire dangers will become more acute given the chemical contents of batteries. Battery suppliers are already having to adapt air freight packaging to accommodate air cargo operators’ concerns about fire dangers from lithium ion batteries. According to Automotive Logistics, industrial packaging manufacturer Nefab is developing new battery packaging solutions made of engineered plywood and designed to mitigate pressure building up in the containers.

For more information, please download the full 2018 annual report here

Topics: supply chain risk management, supply chain disruptions, supply chain risk, impact, automotive industry