DETROIT — Ford Motor Co. said Wednesday that Collins & Aikman Corp. had halted parts shipments to a Mexico plant briefly in a pricing dispute, irreparably damaging ties between the automaker and the bankrupt auto interiors supplier.
Ford is reviewing all contracts with Collins & Aikman following the interruption, which forced the automaker to suspend production temporarily Friday at its plant in Hermosillo, Mexico, where it builds its Ford Fusion midsized sedan, a spokesman said.
"The relationship has been irreparably harmed," Ford spokesman Paul Wood said. He said the two companies had been negotiating for a few months on several issues, and Ford had no plans to cut off existing business for now.
Southfield, Mich.-based Collins & Aikman, which relies on Ford for about one-quarter of its annual revenue, said that it was hopeful the relationship would continue and that it was in discussions with all of its automaker customers over long-term agreements.