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Ford chopping shifts, partially constructing F-150 pickups and Edge SUVs as a result of chip scarcity

Ford Motor Co. shows a brand new 2021 Ford F-150 pickup truck on the Rouge Complicated in Dearborn, Michigan, September 17, 2020.
Rebecca Prepare dinner | Reuters

Ford Motor on Thursday mentioned the global shortage of semiconductor chips and winter storms impacting the supply of different components within the U.S. are inflicting it to cancel shifts at two crops and construct F-150 pickups and Edge SUVs with out sure components.

The automaker plans to finish constructing the F-150 and Edge fashions in “a variety of weeks” when the components, together with some digital parts with semiconductors, can be found. The variety of automobiles impacted is anticipated to be “within the hundreds,” in accordance with a Ford spokeswoman. She declined to be extra particular because of the volatility of the chip scarcity.

The manufacturing cancellations embody three shifts by Friday at a plant in Kentucky that produces Ford Escape and Lincoln Corsair crossovers. Ford additionally confirmed downtime earlier this month in addition to a day subsequent week at a plant in Germany that produces the Ford Fiesta automotive, which is now not bought within the U.S.

Ford’s actions are the most recent because the auto business makes an attempt to cope with the worldwide chip scarcity. Consulting agency AlixPartners estimates the chip scarcity to cut $60.6 billion in revenue from the worldwide automotive business this 12 months.

Ford has mentioned the chip scarcity may lower its earnings by $1 billion to $2.5 billion this 12 months.

Ford’s largest crosstown rival, General Motors, beforehand confirmed it is also partially constructing some pickups in an effort to maintain factories working amid the chip scarcity. GM expects the chip scarcity to chop $1.5 billion to $2.5 billion from its free money circulation in 2021. 

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