Ford to cut production of F-150 pickup trucks due to chip shortage

DETROIT – Ford Motor is once again cutting production of its highly profitable F-150 pickup truck and two other vehicles next week due to the current global shortage of semiconductor chips.

The automaker confirmed Thursday that its assembly plant in Oakville, Canada and its assembly plant in Kansas City, Missouri will be closed the week of August 30. Oakville builds the Ford Edge and Lincoln Nautilus crossovers. Kansas City assembles the F-150.

Ford will also cut two of three shifts next week at its Dearborn, Mich., Truck plant, which produces the F-150.

“Our teams continue to make the most of our available semiconductor allocation, finding unique solutions to deliver as many high-quality vehicles as possible to our dealers and customers,” the company said in a statement.

The Kansas City plant was already down this week due to the chip shortage.

The shortage of parts has resulted in the gradual shutdowns of auto assembly plants around the world throughout this year. Ford has been hit particularly hard by the chip shortage, losing about 50% of its planned production in the second quarter.

The origin of the shortage dates back to early last year when Covid caused gradual closures of vehicle assembly plants. As the facility closed, wafer and chip suppliers diverted parts to other industries such as consumer electronics, which should not be as affected by home orders.

The problem is expected to cost the global auto industry $ 110 billion in revenue in 2021, according to consulting firm AlixPartners.