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Ford Motor Co. on Wednesday announced production cuts at six of its manufacturing plants in North America as the auto industry continues to suffer from a global semiconductor chip shortage.
The company’s production changes include overtime shift cancellations, as well as temporary production shutdowns for up to three weeks from April to June, CNBC reported.
Ford production in its truck plant in Dearborn, Mich., Will be down for two weeks in April, and truck production at its Kansas City plant will shut down for a week, according to the The Wall Street Journal.
CNBC noted that overtime shifts will also be canceled for various durations by June, with factories in Illinois, Ohio, Kentucky and Ontario, Canada also affected.
Ford attributed the additional downtime at its factories to continued chip shortages, which led the company last week to announce it was cutting power of the Transit van at its plant in Kansas City, Missouri, due to the shortage.
CNBC reported that Ford previously noted that it is expected to lose between $ 1 billion and $ 2.5 billion in 2021 due to the shortage of semiconductors, which are essential for vehicle components such as infotainment systems, power steering and brakes.
The Journal and CNBC noted that Ford on Wednesday said it would “provide an update on the financial impact of the semiconductor shortage” when releasing its first quarter results on April 28.
The Hill has contacted Ford for additional information on Wednesday’s production cuts.
Ford announced in February that due to the chip shortage, it is expected to cut production of its F-150 pickup truck, the best-selling vehicle in the country.
The chip shortage has impacted the entire auto industry in recent months, and General Motors said last week that he prolonged production cuts at factories in North America, including assembly sites in Missouri and Michigan.
“GM continues to take advantage of all available semiconductors to build and ship our most popular and demanded products, including full-size trucks and SUVs for our customers,” said GM spokesperson David Barnas, in a statement to The Hill at the time.
“GM has not taken downtime or reduced shifts at any of its full-size truck or full-size SUV plants due to the shortage,” Barnas added.
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