The semiconductor chip madness is far from over.
It's amazing how much damage a thumbnail-sized set of electronic circuits can do to one of the world's biggest industries. The ongoing semiconductor chip crisis shows no signs of relief as automakers struggle to conserve their already dwindling supplies and hard decisions continue to be made. Ford is the latest example.
The Dearborn-based carmaker announced Wednesday in a letter to employees, which was obtained by the Detroit Free Press, that production will be cut at eight factories throughout North America beginning this month and, in some cases, won't come back online until early August. "The global semiconductor shortage continues to affect global automakers and other industries in all parts of the world," said John Savona, Ford's vice president of manufacturing and labor affairs.
"While we continue to manufacture new vehicles, we're prioritizing building our customers' vehicles that were assembled without certain parts due to the industry-wide semiconductor shortage."
The following facilities are affected: Chicago Assembly Plant, Dearborn Truck Plant, Flat Rock, Hermosillo, Kansas City Assembly, Kentucky Truck Plant, Louisville Assembly, and Oakville Assembly.
Popular vehicles including the Ford F-150, Bronco, Mustang, Explorer, Expedition, Lincoln Navigator and Aviator are all built at these sites. Ford hasn't ruled out additional factory disruptions throughout the summer.
Meanwhile, Ford dealerships across the country are struggling because of a lack of new vehicle inventory. Used vehicle prices continue to skyrocket and even then high-end, late-model examples are sometimes becoming more difficult to find. New car prices continue to increase as well.
The Blue Oval emphasized it is working hard at "finding unique solutions to provide as many high-quality vehicles as possible" for customers and dealers. Dealers see the big picture as many have already begun reaching out to lease customers informing them that once their leases are up, they won't have a new car for them. They'll need to either place an order well in advance or purchase their leased vehicles.
Slow sales are being reported throughout the country at Ford stores as many are concerned tht by the time August arrives there won't be any new inventory left to sell.