Ford cutting shifts, partially building F-150s due to chip shortage

Ford Motor Co. displays a new 2021 Ford F-150 pickup truck at the Rouge Advanced in Dearborn, Michigan, September 17, 2020.

Rebecca Cook | Reuters

Ford Motor on Thursday explained the international scarcity of semiconductor chips and winter storms impacting the availability of other areas in the U.S. are triggering it to cancel shifts at two plants and make F-150 pickups and Edge SUVs with no selected components.

The automaker programs to entire constructing the F-150 and Edge designs in “a variety of months” when the pieces, which includes some digital components with semiconductors, are obtainable. The selection of vehicles impacted is envisioned to be “in the thousands,” according to a Ford spokeswoman. She declined to be much more precise due to the volatility of the chip shortage.

The generation cancellations consist of a few shifts by Friday at a plant in Kentucky that generates Ford Escape and Lincoln Corsair crossovers. Ford also confirmed downtime before this thirty day period as nicely as a day subsequent week at a plant in Germany that generates the Ford Fiesta car, which is no more time offered in the U.S.

Ford’s steps are the latest as the vehicle industry tries to deal with the world wide chip shortage. Consulting company AlixPartners estimates the chip shortage to reduce $60.6 billion in revenue from the global automotive marketplace this 12 months.

Ford has claimed the chip lack could lower its earnings by $1 billion to $2.5 billion this yr.

Ford’s most significant crosstown rival, Normal Motors, earlier confirmed it also is partly creating some pickups in an hard work to retain factories managing amid the chip scarcity. GM expects the chip scarcity to cut $1.5 billion to $2.5 billion from its cost-free hard cash stream in 2021.