Ford To Halt Vehicle Production As Semiconductor Shortage Worsens
May 20, 2021 at 08:47 AM EDT
Thursday, May 20, 2021 Ford To Halt Vehicle Production As Semiconductor Shortage Worsens Ford Motor Co.(NYSE:F) is halting production of several of its most popular vehicles due to the ongoing shortage of semiconductor microchips. The Detroit-based automaker said it will halt production at eight North American plants, including in Oakville, Ontario, for varying periods of time through June due to an ongoing shortage of semiconductor chips that is negatively impacting the global auto industry. Impacted vehicles range from the iconic Ford Mustang muscle car and Escape crossover to the highly profitable F-150 pick-up truck and Bronco Sport SUV, the company said in a written statement. The shutdown announcement comes a day after President Joe Biden visited a Ford plant in Dearborn, Michigan, where he voiced support for more domestic microchip production. Biden visited a new plant that will produce Ford’s upcoming electric F-150 truck beginning next year. Impacted Ford plants include: The Chicago Assembly Plant in Illinois will be down the week of May 31 and will operate on a reduced schedule the week of June 7. The Flat Rock Assembly Plant in Michigan will be down the weeks of May 31 and June 7. The Dearborn Truck Plant in Michigan and Kansas City Assembly Plant in Missouri– truck line – will be down the weeks of May 31 and June 7 and will operate on a reduced schedule the week of June 14. The Hermosillo Assembly Plant in Mexico will be closed the weeks of June 21 and June 28. The Louisville Assembly Plant in Kentucky will be down starting the week of May 31 through mid-July, which includes an already-scheduled summer shutdown period. The Oakville Assembly Complex in Canada will be down the weeks of May 31 through June 28. Ohio Assembly Plant will produce only Super Duty Chassis cabs and Medium Duty trucks the weeks of May 31, June 7 and June 14. The cuts come weeks after Ford Chief Executive Jim Farley warned investors that the company expected to lose about 50% of its planned second-quarter production, up from 17% in the first quarter. Ford expects problems from the microchip shortage to reduce its earnings by about $2.5 billion U.S. in 2021, the high end of its previous guidance for the year.