Ford Reduces Production Due To Chip Shortage
The shortage of semiconductor chips used in automotive vehicles is forcing Ford Motor to cut production in July.
The U.S. automaker announced Wednesday that it will reduce production at eight North American plants, six of which are in the U.S. The auto plants will be operating at a reduced rate until early August.
The chip shortages are mostly due to slowed production due to the pandemic, with car companies and home appliances being hit the hardest. There is a large enough stockpile of unfinished 2021 Ford Super Duty pickup trucks parked outside the factory to be able to see them from space, according to a photo from The Drive.
Customers have dealt with product delays since the beginning of the year, or have received unfinished vehicles.
In a statement, Ford said the reduction is to put a focus on “customers’ vehicles that were assembled without certain parts due to the industry-wide semiconductor shortage.”
Ford is expected to lose 50% of vehicle production and about $2.5 billion.
According to consulting firm AlixPartners, this continuing chip shortage is expected to leave a $110 billion mark on the global automotive industry for 2021.
Ford added that apart from the chip shortage, it will also have the Ford Ranger pick-up and new Ford Bronco SUV production reduced for the weeks of July 5 through July 26, due to “an unrelated part shortage," a company spokesperson said.
Confirmed by Ford, the vehicles and plants that will be affected include:
- Ford Explorer and Lincoln Nautilus SUVs: The Chicago Assembly Plant in Illinois will be down for four weeks beginning July 5 and will run two shifts the week of Aug. 2.
- Ford F-150 pickup: The Dearborn Truck plant in Michigan will run two crews for three weeks beginning July 12.
- Ford Mustang: The Flat Rock Assembly plant in Michigan will be down for two weeks beginning July 12.
- Ford Bronco Sport SUV and upcoming Ford Maverick small pickup: The Hermosillo Assembly Plant in Mexico will run one of two shifts the weeks of July 12 and June 19.
- F-150 and Transit van: The F-150 line will be down the weeks of July 12 and July 19, while the Transit line will be down the week of July 19 at the Kansas City Assembly Plant in Missouri.
- Ford Super Duty trucks and Ford Expedition and Lincoln Navigator SUVs: The Kentucky Truck plant in Kentucky will be down the week of July 12 and run two shifts for three weeks beginning July 19.
- Ford Escape and Lincoln Corsair: The Louisville Assembly plant in Kentucky will run on a reduced schedule the week of July 19.
- Ford Edge: The Oakville Assembly Complex in Ontario, Canada will not produce the Ford Edge crossover for three weeks beginning July 19. The plant also produces the Lincoln Nautilus crossover.