Chip shortage forces Ford to cut vehicle production at several factories – .

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Chip shortage forces Ford to cut vehicle production at several factories – .


Jeremy Kennedy, a Ford employee, secures the engine and transmission to the subframe of a new 2020 Explorer at the Chicago Assembly Plant.
Source : Ford
DETROIT – Ford Motor drastically cut vehicle production in North America in July due to a continuing shortage of semiconductor chips affecting the global auto industry.
The automaker said on Wednesday it would slow or cut production at eight factories, including six in the United States, for varying periods next month and through early August due to the issue. The affected products range from Ford F-150 and Ford Bronco Sport to Ford Mustang and Ford Explorer.

Separately, the automaker said production of the Ford Ranger pickup and the new Ford Bronco SUV, which recently began shipping to dealerships, at its Michigan assembly plant will be down in the weeks of July 5 and July 26 due to a “shortage of unrelated parts.” A spokesperson for the company declined to disclose further details.

The cuts are the latest for Ford, which said earlier this year that it expected to lose around 50% of its vehicle production in the second quarter due to the chip problem. Ford said it expects to lose $ 2.5 billion in profits and around 1.1 million units of production this year because of the problem.

In a statement on Wednesday, Ford said the latest production cuts due to the chip shortage were being made to prioritize “customer vehicles assembled without certain parts due to the semiconductor shortage at scale. Of the industry “.
The vehicles and installations concerned are as follows:

  • Ford Explorer and Lincoln Nautilus SUVs: The Chicago, Illinois assembly plant will be closed for four weeks starting July 5 and will operate in two shifts the week of August 2.
  • Ford F-150 Pickup Truck: The Dearborn, Michigan, truck plant will have two shifts for three weeks starting July 12.
  • Ford Mustang: The Flat Rock, Michigan assembly plant will be closed for two weeks starting July 12.
  • Ford Bronco Sport SUV and Upcoming Ford Maverick Small Pickup: The Hermosillo assembly plant in Mexico will operate one of two shifts in the weeks of July 12 and 19.
  • F-150 and Transit Pickup: The F-150 line will be down the weeks of July 12 and 19, while the Transit line will be down the week of July 19 at the Kansas City, Missouri assembly plant.
  • Ford Super Duty Trucks and SUVs Ford Expedition and Lincoln Navigator: The Kentucky Truck Plant in Kentucky will be closed the week of July 12 and will operate in two shifts for three weeks starting July 19.
  • Ford Escape and Lincoln Corsair: The Louisville, Kentucky assembly plant will operate on reduced hours the week of July 19.
  • Ford Edge: The Oakville assembly complex in Ontario, Canada will not be producing the Ford Edge crossover for three weeks starting July 19. The plant also produces the Lincoln Nautilus crossover.

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

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