Ford Has A Plan To Deal With Global Chip Shortage

Industry News / Comments

But it's still going to be a tough second quarter.

The ongoing global semiconductor chip shortage continues to cause trouble for Ford. Last month, it was reported that production of the Ford Mustang would be halted and later this month, production of the Bronco will also be impacted. At this point, a creative solution to what is clearly going to be an extended issue wouldn't hurt. That's exactly what Ford has conjured up. The company has said that it will start redesigning some components to make them more compatible with more widely available chips. It's one of several strategies announced by CEO Jim Farley this week.

Front View Ford
Side View Ford
Top View Ford

Ford will also consider dealing directly with the foundries that make the wafers used for the semiconductors. This would go against the convention of automakers dealing with suppliers rather than the makers of the chips directly. "Not only are we redesigning a lot of our components to work with chips that are more accessible… but we think we need to look at buffer stocks, actual direct contracts with some of the foundries," said Farley.

He noted approximately 60% of the chips used in Ford cars were 55-nanometer in size or larger. These are the chips that are in short supply.

2018-2021 Ford Mustang GT Coupe Front Angle View Ford
2018-2021 Ford Mustang GT Coupe Rear Angle View Ford
2018-2021 Ford Mustang GT Coupe Rear View Ford
Everything You Need To Know About The Genesis X
Everything You Need To Know About The Genesis X
Everything You Should Know About The Ferrari Purosangue
Everything You Should Know About The Ferrari Purosangue

Already, Ford has had to halt the production of its critically important F-150 truck. The automaker said that the ongoing shortage will halve its rate of production this quarter and result in a cost of $2.5 million this year. Ford is not alone, though, as Volkswagen said last week that it was in "crisis mode". In the first quarter of this year, VW had to cut production by 100,000 cars due to the chip shortage. Like Ford, VW has also initiated direct talks with chip manufacturers.

Among big brands, it seems that Toyota is one of the few not to be seriously impacted by the crisis thanks to a stockpile of chips that should allow it to get through this period relatively unscathed.

2021 Ford F-150 Front Angle View CarBuzz
2021 Ford F-150 Side View CarBuzz
2021 Ford F-150 Rear Angle View CarBuzz
Source Credits: Reuters

Join The Discussion

Gallery

2019-2020 Ford F-150 Limited Badge
2018-2021 Ford Mustang GT Coupe Rear Angle View
2018-2021 Ford Mustang GT Coupe Rear View
2018-2021 Ford Mustang GT Coupe Front Angle View
Front View
10
Photos
Back
To Top