Chip shortage forces Ford to shut plants for few weeks

01 July 2021 - 08:15 By Reuters
Ford's Chicago assembly plant will be shut from the week of July 5 to the week of July 26.
Ford's Chicago assembly plant will be shut from the week of July 5 to the week of July 26.
Image: Supplied

Ford Motor Co said on Wednesday several of its North American factories will be shut for a few weeks in July and August due to a global shortage of semiconductors.

The supply crunch would cost it $2.5bn (R35.8bn) this year and halve vehicle production in the second quarter, the Dearborn, Michigan-based company had said in April.

“While we continue to manufacture new vehicles, we're prioritising completing our customers' vehicles that were assembled without certain parts due to the industry-wide semiconductor shortage,” Ford said in a statement.

The No.2 US automaker said its Chicago assembly plant, which makes the Explorer sport utility vehicles (SUVs), will be shut from the week of July 5 to the week of July 26. The plant will run two shifts during the Aug. 2 week.

The company said it would also shutter the production line for one of its best selling vehicles, the F-150 pickup truck, at its Kansas City assembly plant for a couple of weeks next month.

Ford's Michigan assembly plant that recently started shipping its Bronco SUVs will be down for two weeks in July due to a shortage of certain auto parts, the company said, adding that this was unrelated to the chip shortage.

Shares of Ford were down nearly 1% in afternoon trading on Wednesday. 


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