Ford began resuming vehicle production in the United States on May 18, 2020 with new coronavirus safety protocols, such as health assessments, personal protective equipment and facility modifications to increase social distance.
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DETROIT – Ford Motor significantly reduces the production of its extremely profitable F-150 trucks due to the continuous lack of semiconductor chips that affect the global automotive industry.
The automaker said Thursday that Michigan’s Dearborn truck plant will drop to a three-shift for a week starting Monday, while truck production at the Kansas City, Missouri assembly plant will drop to two shifts from three . Ford spokesman Kelli Felker said he expects both factories to return to three shifts in the week of February 15th.
“We are working closely with suppliers to address potential production constraints related to the global shortage of semiconductors and we are working to set priorities for key vehicle lines for production, making the most of our semiconductor allocation,” she said in a statement. -mail.
Ford shares appeared unaffected by discounts, trading at about 3% during intraday trading late Thursday morning. The carmaker is scheduled to report fourth-quarter earnings and provide guidance for 2021 after the market closes on Thursday.
Automakers and parts suppliers began warning of a shortage of semiconductors late last year after demand for vehicles returned stronger than expected after a two-month shutdown of production plants due to the coronavirus pandemic .
Semiconductors are extremely important components of new vehicles for areas ranging from infotainment systems to more traditional parts, such as power steering. They are also used in consumer electronics.
Ford’s confirmed plans come a day after General Motors said it would cut production next week at four assembly plants in Fairfax, Kansas; Ingersoll, Ontario and San Luis Potosi, Mexico. GM will also run a half-capacity plant in South Korea that week.
Ford and other automakers – from Nissan Motor to Volkswagen – have previously reduced vehicle production due to a lack of chips.
Kumar Galhotra, president of Ford of America and international markets, described the lack of chips earlier this week as a “very dynamic situation”. He said the company has worked with its suppliers to mitigate the impact on its plants and resolve the issue as soon as possible.
“It’s changing all the time, but we think we’ll deal with it at least in the first half of this year,” he told CNBC.