DETROIT – Ford Motor is considerably slicing its North American car manufacturing in July on account of an ongoing scarcity of semiconductor chips impacting the global automotive industry.
The automaker mentioned Wednesday it would idle or cut back manufacturing at eight vegetation, together with six within the U.S., for various intervals of time subsequent month and into early August because of the downside. Impacted merchandise vary from the Ford F-150 and Ford Bronco Sport to the Ford Mustang and Ford Explorer.
Individually, the automaker mentioned manufacturing of the Ford Ranger pickup and new Ford Bronco SUV, which not too long ago began delivery to sellers, at its Michigan Meeting plant can be down the weeks of July 5 and July 26 on account of “an unrelated half scarcity.” An organization spokeswoman declined to reveal additional particulars.
The cuts are the most recent for Ford, which earlier this yr mentioned it anticipated to lose about 50% of its vehicle production within the second quarter because of the chip problem. Ford has mentioned it expects to lose $2.5 billion in earnings and roughly 1.1 million models of manufacturing this yr due to the issue.
In an announcement Wednesday, Ford mentioned the most recent manufacturing cuts because of the chip scarcity are being executed to prioritize “prospects’ automobiles that have been assembled with out sure components because of the industry-wide semiconductor scarcity.”
The impacted automobiles and vegetation are as follows:
- Ford Explorer and Lincoln Nautilus SUVs: The Chicago Meeting Plant in Illinois can be down for 4 weeks starting July 5 and can run two shifts the week of Aug. 2.
- Ford F-150 pickup: The Dearborn Truck plant in Michigan will run two crews for 3 weeks starting July 12.
- Ford Mustang: The Flat Rock Meeting plant in Michigan can be down for 2 weeks starting July 12.
- Ford Bronco Sport SUV and upcoming Ford Maverick small pickup: The Hermosillo Meeting Plant in Mexico will run one in all two shifts the weeks of July 12 and June 19.
- F-150 and Transit van: The F-150 line can be down the weeks of July 12 and July 19, whereas the Transit line can be down the week of July 19 on the Kansas Metropolis Meeting Plant in Missouri.
- Ford Tremendous Responsibility vans and Ford Expedition and Lincoln Navigator SUVs: The Kentucky Truck plant in Kentucky can be down the week of July 12 and run two shifts for 3 weeks starting July 19.
- Ford Escape and Lincoln Corsair: The Louisville Meeting plant in Kentucky will run on a decreased schedule the week of July 19.
- Ford Edge: The Oakville Meeting Complicated in Ontario, Canada won’t produce the Ford Edge crossover for 3 weeks starting July 19. The plant additionally produces the Lincoln Nautilus crossover.
The continuing semiconductor chip scarcity is predicted to price the worldwide automotive {industry} $110 billion in revenue in 2021, in line with consulting agency AlixPartners.