Thursday, May 23, 2024
NewsSemi-conductor shortage: Ford Slows Down its Production

Semi-conductor shortage: Ford Slows Down its Production

Ford will be slowing down production in eight plants due to the ongoing semi-conductor shortage

The semiconductor shortage continues to hit the automotive industry hard as we enter 2022. Ford plans to suspend production at eight of its North American facilities in Mexico, the U.S. and Canada, according to Automotive News.

Among the models affected are the F-Series pickup truck, Ford Ranger, Bronco, Explorer SUV and Mustang Mach-E crossover.

As for production of the Ford F-150, its assembly will be halted to make room for a shift to assemble the Transit van. Production at the Chicago and Cuautitlan plants in Mexico will be suspended altogether.

Meanwhile, the Dearborn and Louisville assembly plants will be limited in their respective shifts. Finally, the Oakville plant outside Toronto will eliminate overtime.

The U.S. manufacturer reported less encouraging financial results than expected, which partly explains this slowdown caused by the semiconductor shortage. Fortunately, the forecast for the second half of 2022 is better, with Ford expected to return to higher production.

This production slowdown situation is not unique to Ford, the industry has reportedly already lost just over 370,000 vehicles to this semiconductor shortage. According to AutoForecast Solutions (AFS), that statistic is likely to swell to more than a million units that will not be assembled due to this supply crisis.

Still, some industry players remain optimistic for the second half of 2022, when it is possible that this dispute will be resolved.


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