Ford began resuming automobile manufacturing within the U.S. on Might 18, 2020 with new coronavirus security protocols akin to well being assessmen
Ford began resuming automobile manufacturing within the U.S. on Might 18, 2020 with new coronavirus security protocols akin to well being assessments, private protecting gear and facility modifications to extend social distancing.
Ford
DETROIT — Ford Motor is considerably reducing manufacturing of its extremely worthwhile F-150 pickup vehicles because of an ongoing semiconductor chip scarcity plaguing the worldwide automotive trade.
The automaker mentioned Thursday that its Dearborn Truck Plant in Michigan will drop to 1 shift from three for every week starting Monday, whereas truck manufacturing at its Kansas Metropolis Meeting Plant in Missouri will drop to 2 shifts from three. Ford spokeswoman Kelli Felker mentioned each crops are anticipated to return to 3 shifts the week of Feb. 15.
“We’re working carefully with suppliers to deal with potential manufacturing constraints tied to the worldwide semiconductor scarcity and dealing to prioritize key automobile strains for manufacturing, profiting from our semiconductor allocation,” she mentioned in an emailed assertion.
Shares of Ford gave the impression to be unaffected by the cuts, buying and selling up by about 3% throughout intraday buying and selling late Thursday morning. The automaker is scheduled to report its fourth-quarter earnings and provides steering for 2021 after the market closes Thursday.
Automakers and elements suppliers started warning of a semiconductor scarcity late final 12 months after demand for autos rebounded stronger than anticipated following a two-month shutdown of manufacturing crops as a result of coronavirus pandemic.
Semiconductors are extraordinarily essential elements of latest autos for areas starting from infotainment techniques to extra conventional elements akin to energy steering. They’re additionally utilized in client electronics.
Ford’s confirmed plans come a day after Normal Motors mentioned it will take down manufacturing subsequent week at 4 meeting crops in Fairfax, Kansas; Ingersoll, Ontario, and San Luis Potosi, Mexico. GM may even run a plant in South Korea at half capability that week.
Ford and different automakers — from Nissan Motor to Volkswagen — have beforehand minimize automobile manufacturing as a result of chip scarcity.
Kumar Galhotra, Ford president of the Americas and worldwide markets, described the chip scarcity earlier this week as a “very dynamic scenario.” He mentioned the corporate has been working with its suppliers to mitigate influence to its crops and resolve the problem as rapidly as potential.
“It is altering on a regular basis, however we expect we will probably be coping with it for at the very least the primary half of this 12 months,” he advised CNBC.