Ford shifts, partially building the F-150 due to a lack of chips

Ford Motor Co. displays a new Ford F-150 2021 truck at the Rouge Complex in Dearborn, Michigan, September 17, 2020.

Rebecca Cook | Reuters

Ford Motor said on Thursday that the global lack of semiconductor chips and winter storms affecting the availability of other parts in the US are causing it to cancel exchanges at two factories and build F-150 pickups and Edge SUVs without certain parts.

The carmaker plans to build the F-150 and Edge in “a few weeks” when parts, including some semiconductor electronics, are available. The number of affected vehicles is expected to be “in the thousands,” according to a Ford spokeswoman. It refused to be more specific due to the volatility of the lack of chips.

Production cancellations include three shifts by Friday at a Kentucky plant that produces Ford Escape and Lincoln Corsair crossovers. Ford also confirmed the malfunction earlier this month, as well as a day next week at a factory in Germany that produces the Ford Fiesta, which is no longer sold in the United States.

Ford’s actions are the latest, as the car industry tries to cope with the global chip shortage. The consulting firm AlixPartners estimates that the chip deficit will reduce revenues from the global automotive industry by $ 60.6 billion this year.

Ford said the lack of chips could reduce its revenue by $ 1 billion to $ 2.5 billion this year.

Ford’s biggest rival, General Motors, has previously confirmed that it is also partially building some pickups, in an effort to keep the factories running without chips. GM expects the lack of chips to cut $ 1.5 billion to $ 2.5 billion from its free cash flow in 2021.

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