For over a year now, the semiconductor chip shortage has severely impacted automotive production, forcing automakers to idle plants numerous times. That includes Ford, which has battled this complex issue for months now, with no real end in sight. Ford CEO Jim Farley recently stated that he believes the chip shortage will endure into 2023, while White House officials expect it to last for at least six more months. In the meantime, a number of Ford assembly plants have temporarily closed in recent months. Now, a grand total of eight Ford assembly plants will be down this week, according to Reuters.
As Ford Authority reported last week, that list includes the Ford Chicago Assembly Plant – which builds the Ford Explorer and Lincoln Aviator – as well as the Ford Michigan Assembly Plant – which builds the Ford Bronco and Ford Ranger. Additionally, the automaker will idle the Ford Cuautitlan Assembly Plant in Mexico this week. Meanwhile, the Ford Kansas City Assembly Plant will cease Ford F-150 production and run one shift for the Ford Transit.
The Ford Dearborn Truck Plant, Ford Kentucky Truck Plant, and Ford Louisville Assembly Plant will run either a single shift or reduced schedule starting today, while overtime will be eliminated at the Ford Oakville Assembly Plant in Canada. All of these cuts are being directly blamed on the chip shortage, though Ford did note that it expects production to “improve significantly” in the second half of 2022.
To date, the shortage has cost automakers hundreds of billions in lost revenue and has sent new and used vehicle prices soaring to new record highs with each passing month. Ford has been impacted tremendously by this supply chain crisis as well and was previously projected to lose roughly 700,000 units of production last year alone. The chip shortage has also changed the way that Ford will do business moving forward as the automaker moves toward more of a build-to-order model with limited configurations available on dealer lots.