Ford to halt production of F-150, Bronco Sport and other vehicles due to chip shortage

This photo displays Ford 2018 and 2019 F-150 trucks on the assembly line on the Ford Motor Company’s Rouge Complicated on September 27, 2018 in Dearborn, Michigan.

Jeff Kowalsky | AFP | Getty Photos

DETROIT – Ford Motor will pause or slit reduction manufacturing at eight North American vegetation for various classes of time through June due to the an ongoing shortage of semiconductor chips impacting the auto change.

Affected autos differ from the Ford Mustang and Destroy out crossover to the extremely winning F-150 pickup and Bronco Sport SUV, the corporate confirmed following an inner memo of the plans that used to be received by CNBC.

“Our groups proceed making essentially the most of our available semiconductor allocation and will proceed finding uncommon solutions to waste as many excessive-quality autos as possible to our sellers and customers,” Ford acknowledged in an emailed assertion.

The shutdown announcements come a day after President Joe Biden visited a Ford plant in Dearborn, Michigan, the establish he voiced reduction for more domestic chip manufacturing so something fancy essentially the most up-to-date shortage doesn’t happen once more.

Biden visited a peculiar plant that might waste Ford’s upcoming electrical F-150 origin subsequent year. It be linked to Ford’s Dearborn Truck plant, which is one among two amenities that waste the stout-measurement F-150 pickup.

The impacted vegetation are as follows:

  • Chicago Assembly Plant in illinois will be down the week of May maybe well presumably also 31 and will characteristic on a diminished agenda the week of June 7.
  • Flat Rock Assembly Plant in Michigan will be down the weeks of May maybe well presumably also 31 and June 7.
  • Dearborn Truck Plant in Michigan and Kansas Metropolis Assembly Plant in Missouri– truck line – will be down the weeks of May maybe well presumably also 31 and June 7 and will characteristic on a diminished agenda the week of June 14.
  • Hermosillo Assembly Plant in Mexico will be down the weeks of June 21 and June 28
  • Louisville Assembly Plant in Kentucky will be down starting the week of May maybe well presumably also 31 through mid-July, which involves an already-scheduled summer season shutdown length.
  • Oakville Assembly Complicated in Canada will be down the weeks of May maybe well presumably also 31 through June 28.
  • Ohio Assembly Plant will waste faithful Gigantic Responsibility Chassis cabs and Medium Responsibility trucks the weeks of May maybe well presumably also 31, June 7 and June 14.

The cuts come weeks after Ford CEO Jim Farley warned investors that the corporate anticipated to lose about 50% of its deliberate second-quarter manufacturing, up from 17% in the foremost quarter.

Ford expects complications from the chip shortage to lower its earnings by about $2.5 billion in 2021, the excessive pause of its earlier steering for the year.