Ford Motor Company (NYSE: F) Suffers from Chip Shortage to Slash Vehicle Production at Several Plants in July

Since the beginning of July, Ford Motor Company (NYSE: F) considerably reduced its North American vehicle production due to a shortage of semiconductor chips globally impacting the automobile industry. 

Ford’s Official statement

On June 30, the automaker stated that it would cut the production of cars at eight plants and the six in the United States. Moreover, this will last for early August 2021 due to the shortage of semiconductor chips. Impacted products vary from the Ford Bronco Sport and Ford 150 to the Mustang. 

Besides, the automaker asserted that the Ford Ranger production improves, and Ford Bronco recently began to ship to dealers. However, the Michigan Assembly closed on July 5 and July 26 due to a ‘part shortage.’ The spokeswoman of the company refused to divulge more details.

The breaks are latest for the motor company, which ahead this year is predicted to fall about 50% of its unit production in the next quarter because of the chip crisis. Ford said it was determined to lose $2.5 billion in revenue and approximately 1.1 million cars of output this year due to this issue. 

Furthermore, in that statement, Ford stated that the latest unit production breaks due to the shortage of chips are being accomplished to prioritize customers’ units composed without specific parts due to the semiconductor shortage. 

Moreover, according to the source, the semiconductor shortage is determined to cost the automotive industry $110 billion in income in 2021. 

The Units and Plants affected

  • Ford Explorer Nautilus SUVs: The Assembly Plant in Chicago down for almost four weeks in July. It will work two shifts on August 2. 
  • Ford Mustang: Michigan assembly plant will shut for two weeks. 
  • Ford F-150: The Dearborn Truck plant will work for dual crews for three weeks. 
  • Ford Escape: plant in Kentucky will work on a limited schedule. 
  • Ford Maverick: The assembly plant in Mexico will work two shifts from July 12 and July 19. 
  • Ford Super Duty trucks: The truck plant in Kentucky will shut down for the week of July 12.

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