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Ford Motor To Idle Assembly Plants Due To Semiconductor Shortage

Ford Motor Co. (NYSE:F) is reducing its North American automobile manufacturing, together with at its Oakville, Ontario plant, as a result of ongoing scarcity of semiconductor chips that’s impacting the worldwide automotive trade.

The automaker mentioned it would idle or scale back manufacturing at eight crops, together with six within the U.S. and one in Canada, for various intervals of time over the subsequent month and into early August as a result of semiconductor scarcity. Affected automobiles vary from the Ford F-150 pick-up truck to the Ford Mustang muscle automotive and Ford Explorer SUV.

Separately, the automaker mentioned manufacturing of the Ford Ranger pick-up and new Ford Bronco SUV, which not too long ago began transport to sellers, at its Michigan Assembly plant can be down the weeks of July 5 and July 26 resulting from “an unrelated part shortage.”

The cuts are the most recent for Ford, which earlier this 12 months mentioned it anticipated to lose about 50% of its automobile manufacturing within the second quarter as a result of chip scarcity. Ford has mentioned it expects to lose $2.5 billion in earnings and roughly 1.1 million items of manufacturing this 12 months due to the issue.

The ongoing semiconductor chip scarcity is anticipated to price the worldwide automotive trade $110 billion in income in 2021, in keeping with consulting agency AlixPartners.

In a press release, Ford mentioned the most recent manufacturing cuts as a result of chip scarcity are being achieved to prioritize “customers’ vehicles that were assembled without certain parts due to the industry-wide semiconductor shortage.”

The affected automobiles and crops are as follows:
– Ford Edge: The Oakville Assembly Complex in Ontario, Canada, is not going to produce the Ford Edge crossover for 3 weeks starting July 19. The plant additionally produces the Lincoln Nautilus crossover.

– Ford Explorer and Lincoln Nautilus SUVs: The Chicago Assembly 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 Assembly plant in Michigan can be down for 2 weeks starting July 12.

– Ford Bronco Sport SUV and upcoming Ford Maverick small pickup: The Hermosillo Assembly Plant in Mexico will run considered one of two shifts the weeks of July 12 and July 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 City Assembly Plant in Missouri.

– Ford Super Duty vehicles 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 Assembly plant in Kentucky will run on a lowered schedule the week of July 19.

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