Ford began resuming US car production on May 18, 2020 with new coronavirus safety protocols, such as health assessments, personal protective equipment, and facility adjustments to increase social distance.
Ford
DETROIT – Ford Motor is significantly cutting production of its highly profitable F-150 pick-up trucks due to an ongoing shortage of semiconductor chips in the global automotive industry.
The automaker said Thursday that the Dearborn Truck Plant in Michigan will drop to one shift from three for a week starting Monday, while truck production at the Kansas City Assembly Plant in Missouri will drop from three to two. Ford spokeswoman Kelli Felker said both plants are expected to return to three shifts in the week of Feb. 15.
“We are working closely with suppliers to address potential manufacturing constraints associated with the global semiconductor shortage and are working to prioritize key vehicle manufacturing lines, getting the most out of our semiconductor allocation,” she said in a statement. statement by e-mail.
Shares of Ford did not appear to be affected by the cuts, trading late Thursday morning by about 3% in intraday trading. The automaker is scheduled to report its fourth-quarter earnings and provide guidance for 2021 after the market closes on Thursday.
Automakers and parts suppliers began warning of a semiconductor shortage late last year after vehicle demand recovered more strongly than expected following a two-month shutdown of production facilities due to the coronavirus pandemic.
Semiconductors are extremely important components of new vehicles for areas ranging from infotainment systems to more traditional components such as power steering. They are also used in consumer electronics.
Ford’s confirmed plans come a day after General Motors said production would cease next week at four assembly plants in Fairfax, Kansas; Ingersoll, Ontario and San Luis Potosi, Mexico. GM will also run a half-capacity plant in South Korea that week.
Ford and other automakers – from Nissan Motor to Volkswagen – have previously scaled down vehicle production due to chip shortages.
Kumar Galhotra, Ford president of America and international markets, described the chip shortage earlier this week as a “very dynamic situation”. He said the company has worked with its suppliers to reduce the impact on its factories and resolve the issue as soon as possible.
“It’s constantly changing, but we think we’ll be dealing with it for at least the first half of this year,” he told CNBC.