Chip shortage causes Ford to cut vehicle production at several plants

Jeremy Kennedy, a Ford worker, secures the motor and transmission to the subframe of a new 2020 Explorer at Chicago Assembly Plant.

Resource: Ford

DETROIT — Ford Motor is considerably cutting its North American automobile creation in July due to an ongoing scarcity of semiconductor chips impacting the world wide automotive industry.

The automaker claimed Wednesday it will idle or decrease generation at 8 vegetation, which include six in the U.S., for different intervals of time next month and into early August because of to the dilemma. Affected products vary from the Ford F-150 and Ford Bronco Sport to the Ford Mustang and Ford Explorer.

Independently, the automaker explained output of the Ford Ranger pickup and new Ford Bronco SUV, which not too long ago started off shipping and delivery to sellers, at its Michigan Assembly plant will be down the months of July 5 and July 26 thanks to “an unrelated component scarcity.” A enterprise spokeswoman declined to disclose additional specifics.

The cuts are the latest for Ford, which before this year mentioned it envisioned to drop about 50% of its auto manufacturing in the next quarter thanks to the chip difficulty. Ford has said it expects to shed $2.5 billion in earnings and around 1.1 million models of generation this 12 months for the reason that of the trouble.

In a assertion Wednesday, Ford claimed the most up-to-date manufacturing cuts due to the chip shortage are currently being accomplished to prioritize “customers’ autos that had been assembled without having particular sections thanks to the business-huge semiconductor scarcity.”

The affected automobiles and crops are as follows:

  • Ford Explorer and Lincoln Nautilus SUVs: The Chicago Assembly Plant in Illinois will be down for 4 months commencing July 5 and will run two shifts the 7 days of Aug. 2.
  • Ford F-150 pickup: The Dearborn Truck plant in Michigan will run two crews for a few weeks starting 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 approaching Ford Maverick smaller pickup: The Hermosillo Assembly Plant in Mexico will run just one of two shifts the weeks of July 12 and July 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 Town Assembly Plant in Missouri.
  • Ford Tremendous Responsibility vans 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 3 months commencing July 19.
  • Ford Escape and Lincoln Corsair: The Louisville Assembly plant in Kentucky will operate on a minimized plan the 7 days of July 19.
  • Ford Edge: The Oakville Assembly Elaborate in Ontario, Canada, will not produce the Ford Edge crossover for three months commencing July 19. The plant also creates the Lincoln Nautilus crossover.

The ongoing semiconductor chip scarcity is predicted to price the global automotive business $110 billion in revenue in 2021, according to consulting business AlixPartners.