Ford Trims Production At Several Factories Over Continued Chip Shortages
The global chip shortage is hitting Ford's production numbers, the automaker has revealed, forcing it to temporarily reduce the number of select models it produces. Among the vehicles impacted by the shortage is the Ford F-150, the most popular pickup truck in the United States, as well as the Mustang Mach-E and Bronco SUV.
According to Reuters, the production change will impact a total of eight Ford factories located in Canada, the US, and Mexico, with the downturn starting on February 7, 2022. The production decreases will be joined by reduced shift hours at some other factories, Ford confirmed, including removing overtime for Canadian workers in the company's Oakville, Ontario, plant and trimming workers' schedules in a few US factories.
Some of the company's biggest models are impacted by this production change, with the Lincoln Aviator, Ranger trucks, Transit cargo vans, and Explorer SUVs joining the aforementioned models. Ford's decision to slow down the production of some of its top models underscores the global chip shortage's impact on the automotive industry — and that isn't likely to change in the immediate future.
Despite the current supply chain troubles, Ford told Reuters that it expects its production volume to climb in the second half of the year. In a separate statement provided to CNBC, the automaker said, "Behind the scenes, we have teams working on how to maximize production, with a continued commitment to building every high-demand vehicle for our customers with the quality they expect."
Ford joins many other automakers and tech companies facing the same struggle, including Apple and Sony. Despite the issue, which has dragged on since the early days of the pandemic, the outlook is bright — though not every expert is in agreement over when the supply chain struggles will be corrected.
Analysts expect the second half of 2022 will bring chip supply stabilization, paving the way for an anticipated recovery in 2023. In the meantime, however, companies are likely to struggle and consumers may find it hard to buy certain products — not the least of which is the PlayStation 5, which remains in short supply.