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Ford is part-building and parking new F-150s until chip supply catches up |
The global semiconductor shortage – combined with parts shortages created by the central US winter storm in February – means Ford having to build F-150 trucks and Edge SUVs in North America without certain parts, including some electronic modules that contain scarce semiconductors.
Ford said it would build and hold the vehicles for a number of weeks, then ship the vehicles to dealers once the modules are available and comprehensive quality checks are complete.
The automaker cancelled the Thursday night shift and both shifts today (19 March) at Louisville Assembly Plant due to a semiconductor-related part shortage.
Ford Escape and Lincoln Corsair production was expected to resume Monday on short shifts with full production scheduled to resume Tuesday.
The shortage is also hitting European production.
“In addition, we are taking further down days at our Cologne plant, suspending Fiesta production March 1-16 as well as 22 March,” the automaker said in a statement.
“The costs tied to these actions are covered in the financial updates we previously provided. We said that if the semiconductor shortage scenario is extended through the first half of 2021, the shortage could adversely impact adjusted EBIT by between US$1bn and $2.5bn, net of cost recoveries and some production make-up in the second half of the year.
CNBC reported General Motors previously confirmed it also wass partially building some pickups in an effort to keep factories running amid the chip shortage.
GM expects the chip shortage to cut $1.5bn to $2.5bn from its free cash flow in 2021.