Ford to stop production of F-150, Bronco Sport due to chip scarcity

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Ford to halt production of F-150, Bronco Sport due to chip shortage

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This image programs Ford 2018 and 2019 F-150 trucks on the assembly line at the Ford Motor Company’s Rouge Complex on September 27, 2018 in Dearborn, Michigan.

Jeff Kowalsky | AFP | Getty Images

DETROIT – Ford Motor will stop or cut production at 8 North American plants for differing amount of times through June due to a continuous scarcity of semiconductor chips affecting the vehicle market.

Affected cars vary from the Ford Mustang and Escape crossover to the extremely successful F-150 pickup and Bronco Sport SUV, the business validated following an internal memo of the strategies that was gotten by CNBC.

“Our teams continue making the most of our available semiconductor allocation and will continue finding unique solutions to provide as many high-quality vehicles as possible to our dealers and customers,” Ford stated in an emailed declaration.

The shutdown statements come a day after President Joe Biden checked out a Ford plant in Dearborn, Michigan, where he voiced assistance for more domestic chip production so something like the present scarcity does not take place once again.

Biden checked out a brand-new plant that will produce Ford’s upcoming electrical F-150 starting next year. It’s linked to Ford’s Dearborn Truck plant, which is among 2 centers that produce the full-size F-150 pickup.

The affected plants are as follows:

  • Chicago Assembly Plant in illinois will be down the week of May 31 and will run on a decreased schedule the week of June 7.
  • Flat Rock Assembly Plant in Michigan will be down the weeks of May 31 and June 7.
  • Dearborn Truck Plant in Michigan and Kansas City Assembly Plant in Missouri– truck line – will be down the weeks of May 31 and June 7 and will run on a decreased schedule the week of June 14.
  • Hermosillo Assembly Plant in Mexico will be down the weeks of June 21 and June 28
  • Louisville Assembly Plant in Kentucky will be down beginning the week of May 31 through mid-July, that includes an already-scheduled summertime shutdown duration.
  • Oakville Assembly Complex in Canada will be down the weeks of May 31 through June 28.
  • Ohio Assembly Plant will produce just Super Duty Chassis taxis and Medium Duty trucks the weeks of May 31, June 7 and June 14.

The cuts come weeks after Ford CEO Jim Farley alerted financiers that the business anticipated to lose about 50% of its organized second-quarter production, up from 17% in the very first quarter.

Ford anticipates issues from the chip scarcity to decrease its revenues by about $2.5 billion in 2021, the luxury of its previous assistance for the year.