Ford closes factory because it can’t find enough computer chips

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The Louisville plant employs 3,800 hourly workers, who will receive about 75% of their regular wages during a week’s shutdown. He assembles the Ford Escape and the Lincoln version of this SUV, the Corsair.
“The global semiconductor shortage presents challenges and production disruptions – for the global automotive industry, including Ford (F), which could have a significant ripple effect on jobs and the economy given the importance of automotive manufacturing, ”said Ford (F) in a report.

Automakers slashed orders for computer chips early last year when the pandemic dragged down auto sales and production due to temporary plant closures.

When car sales rebounded earlier than expected, it left the industry in the throes of a chip shortage. This was exacerbated by increased demand for laptops during the stay-at-home era – and the electronics and computer industries spiked the oversupply of chips, said Kristin Dziczek, vice president of research at the Center. for Automotive Research, a Michigan company. tank.

“It’s temporary, but it won’t be for the short term,” she said. The problems will likely last for the first three months or so of the year. We hope that supplies should return to normal in the second quarter.

The average car contains between 50 and 150 tokens, she says. And all the chips are needed to assemble the cars.

The problem isn’t just with US auto factories – factories in Europe and Asia are also facing chip shortages.

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