Ford cuts vehicle production at six factories across North America due to chip shortage



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Ford began to resume vehicle production in the United States on May 18, 2020 with new coronavirus safety protocols such as health assessments, personal protective equipment, and facility modifications to increase social distancing.

Ford

Ford Motor is drastically cutting output at seven factories in North America due to a continuing global shortage of semiconductor chips, including facilities that produce its highly profitable pickup trucks.

Measures vary from plant to plant, but range from overtime shift cancellations to shutting down facilities for up to three weeks from April to June. Or a combination of both.

Affected plants are found in Illinois, Ohio, Kentucky, Michigan, Missouri and Ontario, Canada. They produce a wide range of products – from F-150 pickup trucks and vans to the Ford Explorer SUV and the Ford Escape crossover.

Production of the F-150 in Dearborn, Mich., Will be down in the weeks of April 5-12, the company said. Ford is also canceling overtime at the factory for the weeks of April 26, May 10, May 31, and June 21. Another Missouri plant that produces the full-size F-150 will be idle for a week from Monday. Overtime shifts at the plant end for eight weeks during most of June.

Semiconductors are key components used in infotainment, power steering and braking systems in new vehicles, among others. As several factories closed last year due to Covid, suppliers have diverted semiconductors from automakers to other industries, creating a shortage after consumer demand returned to stronger than expected.

Ford had previously said it expected the shortage to lower its profits by $ 1 billion to $ 2.5 billion in 2021. Without releasing a new forecast, the company said it would “provide an update on the financial impact of the semiconductor shortage “during its first quarter revenues on April 28.

This is a developing story. Check back shortly for more updates.

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