This photo shows 2018 Ford and 2019 F-150 trucks on the assembly line of the Ford Motor Company’s Rouge Complex on September 27, 2018 in Dearborn, Michigan.
Jeff Kowalsky | AFP | Getty Images
DETROIT – Ford engine will suspend or discontinue production at eight North American plants for various periods through June as the auto industry continues to suffer from semiconductor chip shortages.
Affected vehicles range from the Ford Mustang and Escape Crossover to the highly profitable F-150 pickup and Bronco Sport SUVthe company confirmed after an internal memo of the plans received from CNBC.
“Our teams continue to leverage our available semiconductor allocation and will continue to find unique solutions to bring as many high-quality vehicles as possible to our dealers and customers,” said Ford in a statement sent via email.
The shutdown announcements come a day after President Joe Biden visited a Ford facility in Dearborn, Michiganwhere he expressed his support for more domestic chip manufacturing so that something like the current shortage does not recur.
Biden visited a new plant that will manufacture Ford’s new electric F-150 starting next year. It is linked to Ford’s Dearborn Truck plant, one of two plants that make the full-size F-150 pickup truck.
The plants affected are as follows:
- The Chicago, Illinois assembly plant will be closed for the week of May 31st and will operate on a reduced schedule for the week of June 7th.
- The Flat Rock assembly plant in Michigan will be closed for the weeks May 31 through June 7.
- The Dearborn Michigan Truck Plant and Kansas City, Missouri Assembly Plant – Truck Line – will be out of service from May 31 to June 7 and will operate on a reduced schedule for the week of June 14.
- The Hermosillo assembly plant in Mexico will be closed from June 21st to June 28th
- The Louisville, Kentucky assembly plant will be out of service from the week of May 31 through mid-July, including a pre-planned summer shutdown period.
- The Oakville Assembly Complex in Canada will be closed from May 31st to June 28th.
- The Ohio assembly plant will only produce super-duty chassis cabs and medium-duty trucks for the weeks of May 31, June 7, and June 14.
The cuts come weeks after Ford CEO Jim Farley warned investors about the company expected to lose about 50% of planned production in the second quarter of 17% in the first quarter.
Ford expects the chip shortage issues will cut profits by around $ 2.5 billion in 2021. This is the high end of his previous forecast for the year.