Ongoing Chip Shortage Halts Ford F-150 Production Yet Again

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Two Ford plants will shut down next week.

It seems like a long time since freezing winter weather impacted the production of the Ford F-150 in the first quarter of the year, but this event was not the first or the last time the best-selling truck ran into production issues. The semiconductor chip shortage has been creating more problems for Ford and the issue remains ongoing as the Blue Oval is once again halting the production of F-150 pickup. Ford's Oakville Assembly Plant in Canada and the Kansas City Assembly Plant in Missouri will both pause production next week.

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Two of three shifts at the Dearborn Truck Plant in Michigan will also be affected. The Dearborn and Kansas City plants will directly impact the F-150, while the Oakville plant's shutdown affects the Ford Edge and the Lincoln Nautilus as well. This news comes after Ford already cut production by 50% in the second quarter of this year.

"Our teams continue making the most of our available semiconductor allocation, finding unique solutions to provide as many high-quality vehicles as possible to our dealers and customers," said Ford in a statement.

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The cumulative effects of the chip shortage are expected to cost the global auto industry a massive $110 billion in revenue this year. Ford has come up with several solutions to mitigate that, but these can only do so much. In May, the company said it would redesign some components to make them compatible with chips that are more widely available.

More recently, Ford allegedly sent a letter to dealers that says it would build F-150s without the start/stop feature and offer them a $50 credit for the inconvenience. Other automakers have also removed specific features in an effort to keep production ticking over, but one wonders when the crisis will finally end.

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Source Credits: CNBC

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