Ford to suspend or cut output at 8 of its factories due to chip shortage -Breaking
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© Reuters. FILEPHOTO: Ford Motor assembly workers work on a F-series pickup truck at Dearborn Truck Plant in Dearborn (Michigan), U.S.A. January 26, 2022. REUTERS/Rebecca Cook/File Photo2/2
SAN FRANCISCO, (Reuters) – Ford Motor (NYSE) will suspend production in eight factories in America, Mexico, and Canada next week due to chip supply shortages, a spokesperson told Reuters Friday.
These changes are made one day after Detroit’s automaker, Detroit Automaker, warned that a shortage of chips would cause a drop in vehicle volumes for the current quarter.
The suspension of production at the factories in Michigan and Chicago, as well as in Cuautitlan in Mexico, will result in a halt to all manufacturing. Kansas City will see its F-150 pickup trucks stopped production, while its Transit vans will continue to be produced in one shift.
Detroit’s automaker, Ford, will run one shift, or reduce its schedule in its Dearborn and Louisville factories. It also plans to eliminate overtime at Oakville in Canada.
The week commencing February 7th will see all the changes.
Ford shares slumped on Friday, after the automaker posted smaller-than-expected quarterly income and forecast a slower recovery in 2022 vehicle production than rival General Motors (NYSE:)
According to the company, however, vehicle volumes are expected to rise significantly over the second-half.
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