Ford to halt production of F-150, Bronco Sport due to chip shortage

This photograph demonstrates Ford 2018 and 2019 F-150 vehicles on the assembly line at the Ford Motor Company’s Rouge Intricate on September 27, 2018 in Dearborn, Michigan.

Jeff Kowalsky | AFP | Getty Photographs

DETROIT – Ford Motor will halt or minimize creation at 8 North American vegetation for various durations of time as a result of June because of to an ongoing shortage of semiconductor chips impacting the car business.

Afflicted vehicles variety from the Ford Mustang and Escape crossover to the remarkably lucrative F-150 pickup and Bronco Sport SUV, the business confirmed pursuing an inner memo of the plans that was obtained by CNBC.

“Our teams continue making the most of our out there semiconductor allocation and will go on locating exclusive alternatives to supply as a lot of high-high quality automobiles as probable to our dealers and consumers,” Ford reported in an emailed assertion.

The shutdown bulletins come a day immediately after President Joe Biden visited a Ford plant in Dearborn, Michigan, in which he voiced aid for extra domestic chip creation so a thing like the recent shortage does not happen once again.

Biden visited a new plant that will develop Ford’s approaching electric powered F-150 starting next yr. It can be connected to Ford’s Dearborn Truck plant, which is 1 of two amenities that generate the total-size F-150 pickup.

The impacted plants are as follows:

  • Chicago Assembly Plant in illinois will be down the week of May possibly 31 and will run on a diminished timetable the 7 days of June 7.
  • Flat Rock Assembly Plant in Michigan will be down the weeks of May 31 and June 7.
  • Dearborn Truck Plant in Michigan and Kansas City Assembly Plant in Missouri– truck line – will be down the months of Could 31 and June 7 and will work on a minimized schedule the 7 days of June 14.
  • Hermosillo Assembly Plant in Mexico will be down the months of June 21 and June 28
  • Louisville Assembly Plant in Kentucky will be down starting the 7 days of May perhaps 31 by mid-July, which incorporates an currently-scheduled summer shutdown interval.
  • Oakville Assembly Complex in Canada will be down the weeks of Could 31 by means of June 28.
  • Ohio Assembly Plant will produce only Tremendous Duty Chassis cabs and Medium Duty vehicles the months of May well 31, June 7 and June 14.

The cuts arrive weeks soon after Ford CEO Jim Farley warned buyers that the company expected to shed about 50% of its planned next-quarter manufacturing, up from 17% in the first quarter.

Ford expects issues from the chip scarcity to reduce its earnings by about $2.5 billion in 2021, the higher close of its prior steerage for the calendar year.