Months ago, Ford was storing 2021 Ford F-150 pickups in parking lots near the Detroit airport and the Ford Kansas City Assembly Plant as the automaker worked to complete final quality checks of its brand new pickup. Now, the same thing is happening all over again, but this time, it’s due to the global semiconductor chip shortage, which has led to a stockpile of incomplete 2021 Ford F-150 pickups.
According to the Detroit Free Press, these incomplete 2021 Ford F-150 pickups are sitting at a Department of Public Works rail yard off I-96 near Evergreen in Detroit. It estimates that there is somewhere between a few hundred thousand and one million dollars in inventory sitting in these parking lots, which are trucks Ford has produced but simply doesn’t have the semiconductor chips needed to finish them.
Despite this influx of incomplete 2021 Ford F-150 pickups, Ford has been forced to cut production of the model, along with most others produced in the U.S., as it continues to try and navigate the chip shortage and related supply chain issues, including a potential foam and rubber shortage.
Ford CEO Jim Farley also participated in a White House summit Monday with other automakers, chipmakers, President Joe Biden, and members of Biden’s staff addressing the global microchip shortage. In that meeting, Biden promised that legislation addressing the issue and congression funding to support production are on the way.
The funding would come in addition to a proposed $50 billion dollar investment in semiconductor manufacturing and research included in Biden’s proposed infrastructure plan. Despite some, like Farley saying that the chip shortage should be over by Q3, many analysts have recently stated that they believe it could go on at least through the end of the year, causing production shortages of two- to three million vehicles around the globe.
We’ll have much more on the chip shortage soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.
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Instead of getting involved in politics and singing "We are the world", why doesn't Ford build their own chips in the USA? They are so involved with China and other idiotic pursuits, it's a wonder they are still afloat. Isn't it time for more bonuses for the brass?
Because that's not their expertise and it's very expensive to manufacture the integrated circuits onto the semiconductors. Those shiny round wafers are the semiconductors and blank. When you see them with a bunch of cool and different colors on them, the integrated circuit has been imprinted on them already. Look up how it's made, it's actually very interesting. Lithography, of all things, is used to create them. The same goes for the processor in your phone, pc, mac, ect.
There's about 300 trucks in that picture in the article, which is a lot more than a million dollars worth. Assuming they cost $25k to build, that's more like $7.5 million. Which, really still isn't absurd. 300 trucks isn't even a full shift worth.
As far as making chips themselves, you have to ask yourself if you're really gonna do a better job than your supplier. Typically, the suppliers design and manufacture the chips. So not only does Ford have to figure out how to make the chips, but also how to design them. Could it be done? Sure. Are they going to do a better job than the supplier who specializes in it? Probably not. Are they going to make more money on their investment by starting up chip manufacturing vs designing a new truck? No. Usually best to stick to what you're good at.
I agree Ryan, and who said anything about China the chips are made in California by Intel, Nvidia, and Texas Instrument (Texas based) so as of yet China has nothing to do with semiconductors in our vehicles yet. However Asia is on the rise and fast becoming the number one maker of chips, that's why it's political China for one is beating us in so many sectors of business in the world. We need the infrastructure bill passed through Congress to catch up and regain our standing in the world as leaders.
Ed where are you getting your info???? Intel, Nvidia and TI design chips mfg equipment etc., but most of their chips are produced OUTSIDE of the US. Taiwan (for those that actually care to research the situation) is one of the largest Chip MFG in the world (they are not part of the US). BTW, Korea, is also a major chip MFG. But there is nothing to worry about, as biden stated, china can't compete with us (come on man).
Those trucks can sit in the lot until hell freezes over as far as I'm concerned. These things are really a scourge on the roadways. 99.9% of them won't carry anything heavier than a load of groceries home from the supermarket.
So?
Someone can have my 2021 f150, bought the truck March 3rd, it’s been in the shop twice with a power train module issues, (miss fire on cylinder #7 keep getting a low oil light come on when it has oil in it and a alarm that says alarm on hill decent, I don’t live near hills🤦🏻♂️, it only has 2000 miles on it,
Fat ass amy wants one for her drunk husband jeff to kill someone with.
A million dollars worth of new F150’s wouldn’t fill a very big parking lot. If they averaged $40,000.00 each that would only be 25 trucks.
Infrastructure Has nothing to do with Automotive industry. Ford needs to figure out this issue on its own. Ford needs to stay out of the political area and build good Vehicles. Everyone trying to say pass Infrastructure Former Vice President Joe Biden and his cronies call everything Infrastructure. Ford builds a good Vehicle someday I may be able to afford one. But My money will not be spent with them if I find out The push for this Disaster of a spending Bill.
Personally I would love to buy an incomplete F-150 at a discounted price and complete it myself.
KTP was given the seat module from kcs to continue our production. Now we our taking up to 20,000 units to off site locations to sit for the up to 4 months.