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Ford Motors Slashes Vehicle Production at Several Plants

Six plants of Ford Motors in North America have significantly cut down production due to an ongoing global shortage of semiconductor chips. The production units, including facilities that produce highly profitable pickup trucks. The actions vary from plant to plant but range from overtime shift cancellations to facilities being closed for three weeks from April to June. Some plants are also facing a combination of both.

The impacted plants are situated in Ohio, Michigan, Kentucky, Illinois, Missouri, and Ontario, Canada. These plants produce an array of products from F-150 pickups and vans to the Ford Explorer SUV and Ford Escape crossover. The company said, production of F-150 in Dearborn, Michigan, will be down during the weeks of April 5th and April 12th. The overnight shifts at the plant during the weeks of April 26th, May 10th, May 31st, and June 21st have also been canceled.

Starting from Monday, the Ford Motors plant in Missouri that produces the full-size F-150 will be idled for a week. For eight weeks through most of June, overtime shifts are being terminated at the plant. Previously, Ford Motors said that it expected the shortage to lower its earnings by $1 billion to $2.5 billion in 2021. The company said, “It will provide an update on the financial impact of the semiconductor shortage.”

In the infotainment, power steering, and braking systems of new vehicles, semiconductors are the key components, among other things. Last year due to Covid, multiple plants were shut down. This led to suppliers redirecting semiconductors from automakers towards other industries. After consumer demand snapped back more potent than expected, a shortage has been created.

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