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Bronco SUVs in manufacturing at Ford’s Michigan Meeting plant, June 14, 2021.
Michael Wayland | CNBC
DETROIT – Ford Motor is reducing manufacturing subsequent week of a number of key merchandise as a result of an ongoing international scarcity of semiconductor chips.
The automaker on Friday confirmed manufacturing downtime subsequent week for the Ford Bronco and Explorer SUVs; the Ford F-150 and Ranger pickups; the Ford Mustang Mach-E electrical crossover; and the Lincoln Aviator SUV at vegetation in Michigan, Illinois, Missouri and Mexico as a result of components scarcity.
The automaker is also reducing some productions of the F-150 and Ford Transit cargo vans at vegetation in Michigan and Missouri.
The cuts sign the chip scarcity that devastated the auto business final yr continues to linger. They arrive a day after Ford considerably missed Wall Avenue’s earnings expectations as a result of lower-than-expected manufacturing brought on by the provision chain points, inflicting shares to tumble 9.7% on Friday.
“The worldwide semiconductor scarcity continues to have an effect on Ford’s North American vegetation – together with automakers and different industries world wide,” Ford stated in an emailed assertion. “Behind the scenes, now we have groups engaged on maximize manufacturing, with a continued dedication to constructing each high-demand automobile for our clients with the standard they count on.”
The truth that Ford is reducing a few of its most worthwhile and in-demand fashions such because the Bronco, Mach-E and F-150 exhibits automakers proceed to battle with the issue regardless of many within the business anticipating a gradual enchancment within the provide of chips in 2022.
Ford offered 1.9 million automobiles within the U.S. in 2021, down by 6.8% because it managed by means of a world scarcity of semiconductor chips. The components drawback compelled Ford and different automakers to sporadically shutter vegetation and depleted automobile inventories.
After growing by roughly 140% in 2021, shares of Ford are down by 13.5% this yr.
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