Ford began resuming vehicle production in the United States on May 18, 2020 with new coronavirus safety protocols, such as health assessments, personal protective equipment and modifications to facilities to increase social distance.
Ford
DETROIT – Ford Motor is significantly reducing the production of its highly profitable F-150 trucks due to the continuing scarcity of semiconductor chips plaguing the global automotive industry.
The automaker said on Thursday that its Dearborn truck plant in Michigan will drop from three to one shift for a week starting on Monday, while truck production at its Kansas City assembly plant in Missouri will drop from three to one. two turns. Ford spokeswoman Kelli Felker said that both factories are expected to return to three shifts in the week of February 15.
“We are working closely with suppliers to address potential production constraints linked to the global scarcity of semiconductors and to prioritize major vehicle lines for production, making the most of our semiconductor allocation,” she said in a statement by and -mail.
Ford’s shares appeared to have been unaffected by the cuts, rising about 3% during intraday trading on Thursday morning. The automaker is scheduled to report its fourth quarter earnings and provide guidance for 2021 after the market closed on Thursday.
Automakers and parts suppliers began to warn of a shortage of semiconductors late last year, after vehicle demand rebounded stronger than expected after a two-month factory shutdown due to the coronavirus pandemic.
Semiconductors are extremely important components of new vehicles for areas ranging from information and entertainment systems to more traditional parts, such as power steering. They are also used in consumer electronics.
Ford’s confirmed plans came a day after General Motors said it would halt production next week at four automakers in Fairfax, Kansas; Ingersoll, Ontario, and San Luis Potosi, Mexico. GM will also operate a factory in South Korea at half capacity that week.
Ford and other automakers – from Nissan Motor to Volkswagen – have already cut vehicle production due to a lack of chips.
Kumar Galhotra, Ford’s president for the Americas and international markets, described the chip shortage earlier this week as a “very dynamic situation”. He said the company has been working with its suppliers to mitigate the impact on its factories and resolve the problem as quickly as possible.
“It is changing all the time, but we think we will deal with it at least in the first half of this year,” he told CNBC.