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Ford to partly assemble some vehicles, idle two plants due to global chip shortage

Ford to partly assemble some vehicles, idle two plants due to global chip shortage

FILE PHOTO: Ford logo is pictured at the 2019 Frankfurt Motor Show (IAA) in Frankfurt, Germany. REUTERS/Wolfgang Rattay

DETROIT: Ford Motor Co said on Thursday (Mar 18) it for now will assemble its flagship, highly profitable F-150 pickup trucks and Edge SUVs in North America without certain parts and idle two assembly plants due to the global semiconductor chip shortage.

The US automaker said the chip shortage, combined with the shortage of a part caused by the central US winter storm, is prompting it to build the vehicles and then hold them "for a number of weeks" until they can be completed and shipped. The affected vehicles number in the "thousands", a spokeswoman said.

Ford said it is also idling production at plants in Louisville, Kentucky, and Cologne, Germany.

The costs associated with these actions are covered in the Dearborn, Michigan-based company's previous forecast that profits this year could be hit by US$1 billion to US$2.5 billion due to the chip shortage.

Commentary: There is a global semiconductor famine and it will not go away anytime soon

The trucks and SUVs being assembled without certain parts include some electronic modules with the scarce chips, Ford said. It did not identify suppliers of the affected parts, but a spokeswoman said the parts needed for the F-150 and Edge vehicles are tied to basic vehicle functions, such as windshield wiper motors and infotainment systems.

Ford is canceling the late shift on Thursday and both shifts on Friday at its Louisville Assembly Plant, which builds the Ford Escape and Lincoln Corsair SUVs. Production is expected to resume on short shifts on Monday and full production the following day.

In Cologne, where the Fiesta car is built, the plant is being idled Mar 1 to 16 and Mar 22. The company did not say what volume was being lost due to that action.

Source: Reuters/jt

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