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.
Comments
It is time to come clean and tell customers some timelines! Having a high end F150 on order for over 5 months and still hearing we have no idea just doesn’t cut it.
It would be beneficial to all the Ford suppliers if Ford laid out a plan of shutdowns and kept with the plan. The suppliers have material planning they need to make as well. In the long run this would benefit Ford too.
I ordered an F150 Lariat on January 8 they said it was manufactured March 18 after several calls I am pretty convinced I will not get my truck anytime soon it’s unbelievable they should be able to tell us a window of when the vehicle should be delivered. If there was transparency I never would’ve ordered the truck. They gave me a Vin number that’s all I have
I ordered mine the week before that. First it sat in the production line the week Kansas plant closed down for an ice storm, then sat at the bedliner coater. Then for a couple weeks it was in transit, due to arrive at the dealer the end of March. Turns out it was in transit to a vacant parking lot in Detroit waiting for the infamous chip. Ford regional rep put a “hot” order on it the first week of April telling me I would have it in 3-4 weeks. Once that came and went I am now hearing crickets. The problem I have now is I may just wait for a 22 model, I am m not sure if I want a truck that has been sitting outside in a parking lot for several months.
I am like you, if Ford was honest about this whole thing I would have picked up a truck from the lot while there was inventory.
Michael, I’m in the same situation as you have described. The fact that the dealerships tracking information is not being updated to current data says a lot about FMC upper management. This is not fair to the customers out there still waiting for their vehicle to be received. I also am concerned about vehicles setting out in extreme temperatures and environment without any concern from FMC not protecting at least the interior of the vehicles. WOW! That just shows how much FMC doesn’t care about their customers. This is a common sense fix to at least 1. Update the VIN# to current status. (By the way HOT order doesn’t mean a thing) 2. Protect the vehicles. I could see a recall on interior components being replaced due to deterioration like cracking, discoloration, tears, etc.
By the way What the HELL did the CEO / COO / COA do if anything during the meeting with the government politicians? WE haven’t heard a thing on it’s outcome nor any action items to any detail on a corrective action plan for the micro chip dilemma. To be told by Ford Authority readers / customers; “WAIT FOR IT”! REALLY? By the way what is FMC doing to the price of the 2021 customers waiting for months to receive their expensive vehicles/ NO more incentives programs, rebates, deduction in price (It’s only going up).
BLUF – FMC needs to step up their game plan and start acting / PROVING they are customer focused on QUALITY and CUSTOMERS…. VERY DISAPPOINTING ) :
So are you still standing behind your report that Dearborn would be closed down while also reporting it’s down to one shift the week of the 24th?
Yep, and there is a reason he is no longer there!
The backorder situation and production problems are causing delays for ALL manufacturers… not just FORD. I seriously doubt FORD could say or do anything to please some you so, why don’t you take your business somewhere else so the rest of us don’t have to listen to your whining and complaining?…. Oh I forgot, its all about you!
Bite me. You must work for the Ford Customer Care department. Both Chevy and Toyota dealers in the area have trucks on the lot for sale. There are very few Fords. If I didn’t already have 5 months invested I would try something else. I spend about 100K with Ford each year. You think they would value customers enough to communicate even if it not good. The old mushroom approach isn’t good for long term customer service.
I hope you like your new Chevy or Toyota…. under the circumstances, there is nothing FORD could say or do for you that would make you happy….. so like I said, take your business elsewhere. and good riddance to you.
I have a 2021 F-150 in the body shop waiting on 1 Part.. there is 2 dealerships that have the part and refuse to give to body shop.. I have been without truck for 9 weeks still paying my payment and no truck to get back and forth to work and no help from Ford.. and thousands of trucks sitting waiting for chip which could be a tear or more how is this fair..
So you think it’s just fine that Ford has had their head in the sand since February and seems like no plan what so ever to get this mess resolved. First, I bet you are a troll and are not effected by this delay and poor communication. Secondly, if you think this response and communication has been handled well you are part of the problem.
No body would have predicted the issue with these semiconductors or chips and any other parts but hopefully they think about making parts back in North America and people have jobs out of all this Ford will come out at the top in the end
Your delays don’t beat mine i have been waiting for 7 months and I still don’t get a time frame.
So folks I have bad news. I have seen behind the Ford curtain a little in the last few days. Ford is screwing loyal customers who special ordered F150’s. If you look around trucks are quietly arriving at a dealership near you for their inventory. Your truck is still weeks from being delivered. These trucks were built after your truck that is parked in a storage lot. Ford set this up so the dealers could rape customers by charging $2500, 5K or even 10K over MSRP for the next few months while they take their sweet time catching up on customers trucks. I was told over and over but a regional Ford rep that customer orders delayed were going to take priority. Well, when pressed on this he responded that only applied to the trucks parked. As the chips become available they are only using a small portion for the parked trucks, The chips are being used to quickly produce inventory to reward dealers in turn screwing those of us who have waited almost a half a year. This decision sucks.
I ordered a F150 at the beginning of March. It was produced on April 28th with delivery ETA of May 22-28. I sold my 2011 F150 in anticipation of receiving my truck on schedule. My salesman told me that the arrival date was showing May 27th when he checked it on the 26th. Then he told me that when he checked the status on the morning of May 27th the status changed to October 31 due to needing a microchip. Way to go Ford! Way to screw over your customers with false information. There is no way that I can wait until October for a truck, so I guess I will have to take my money and buy anything but a Ford.
While we’re on the subject of Fords. Why did Ford make a mini Bronco. Couldn’t go bigger? Looks nice in pictures, but when you see one in person….way too small. THAT should have been called the Maverick. Hey Ford…make a real Bronco.