Ford slashing production and closing plants as chip shortage continues

Ford will be cutting its production and temporarily shutting down a number of its plants in the U.S. and Canada. The main reason for the move is the ongoing global chip shortage that apparently has yet to be solved.

Ford is really feeling the effects of the prolonged semiconductor shortage now and it was left with no choice but to reduce assembly works as the chips are an important part of its vehicles. The American automaker issued the notice of plant shutdowns and slash on production just a day after President Joe Biden visited the company’s Rouge Electric Vehicle Center, as per Fox Business.

List of plant locations to shut

The media outlet was able to obtain the internal memo containing the announcement of temporary plant closures. Based on the note, Ford facilities in seven locations will be shut and begin the reduction of operations.

Included in the list are the Chicago assembly plant (to close in the week of May 31 and operate on a reduced schedule in the week of June 7), the assembly plant in Flat Rock (down the weeks of May 31 and June 7), the truck facility in Dearborn and truck line in Kansas assembly plant (down the weeks of May 31 and June 7 but will operate on a reduced schedule the week of June 14).

The plant in Mexico will be down the weeks of June 21 and June 28 while the one in Kentucky will be down starting the week of May 31 until the week of June 28. The assembly complex in Canada will be shut starting the week of May 31 until June 21 and lastly, the assembly plant in Ohio will only make Super Duty Chassis cabs and Medium Duty trucks in the weeks of May 31, June 7 and June 14.

The affected Ford models

The vehicles that will be impacted by the temporary plant closures are the Ford Mustang, Escape crossover, F-150 pickup trucks and Bronco Sport SUV. At any rate, the company is aware that it will take a while before the chip supply could return to normal.

“Our teams continue making the most of our available semiconductor allocation and will continue finding unique solutions to provide as many high-quality vehicles as possible to our dealers and customers,” Ford Motor said in an emailed statement to CNBC.