In recent weeks, the semiconductor chip shortage has severely impacted global automotive production, with Ford feeling the effects more so than most other automakers. The Blue Oval recently admitted that it may have to slash its Q2 output in half and most recently lost 72,000 vehicles in one week. Now, it seems that 2021 Ford F-150 and Ford Escape production will suffer even more.
The Detroit Free Press reports that the Ford Louisville Assembly Plant – which builds the Escape and Lincoln Corsair – will be idled the week of May 24th, while the Ford Dearborn Truck Plant – which builds the Ford F-150 – will be down to one shift that same week. Both F-150 and Escape production have suffered multiple times over the last few months as the automaker continues to struggle with a broken supply chain.
As of last week, experts believe that the global automotive industry will lose upwards of $110 billion and 3.9 million units of production as a result of the chip shortage this year alone, while Ford anticipates that it could take a $1 billion to $2 billion hit to its EBIT. Making matters worse, the chip shortage is only compounded by other supply chain issues including steel, rubber, and foam shortages, to name a few.
Meanwhile, Ford is trying to circumvent the problem by stockpiling unfinished F-150 and Ford Super Duty pickups in Detroit and Kentucky, as well as stocking up on critical items like chips in the future, purchasing chips directly from manufacturers instead of third-party suppliers, and redesigning some of its components to accept more readily available chips. Regardless, there doesn’t appear to be an end to the chip shortage in sight, with many experts believing that it could last until 2022 or even several years down the road.
We’ll have much more on the chip shortage and how it’s affecting Ford’s production soon, so be sure and subscribe to Ford Authority for the latest Ford F-Series news, Ford F-150 news, Ford Escape news, and continuous Ford news coverage.