Ford isn’t alone as it struggles with the ongoing semiconductor chip shortage. But now, the 2021 Ford F-150 is being cut. Most of Ford’s chips were going toward the most popular models like the Ford F-150, but this plan ran out of chips.
The 2021 Ford F-150 is being cut
Ford has been fighting the global semiconductor chip shortage along with a majority of automakers. It was saving their chip supply to build the most profitable models, such as the 2021 Ford F-150.
Then thousands of F-150 models were being built and stored until a supply of chips arrived. Once the chips arrive, they will be added to the trucks. Then the trucks will go through quality testing to ensure that they are ready to be delivered.
These plans worked for a while, but now you can see Ford F-150 models that are stored in a parking lot from space. There are thousands of unfinished models. Plus, Ford is shutting down more plants.
Which plants are being temporarily closed?
The Kansas City plant that assembles the 2021 Ford F-150 has already been shut down this week. Now Ford has confirmed that the Oakville Assembly Plant in Canada and the Kansas City Plant will be closed until August 30. The Oakville Assembly Plant builds the Ford Edge and the Lincoln Nautilus.
Ford will also cut two of the three shifts next week at the Dearborn Truck Plant in Michigan. The Ford F-150 is produced there too. Ford shared that their teams are making the most of the available semiconductor chip allocation. They will continue finding unique solutions to provide as many high-quality vehicles as possible to dealerships and customers.
Along with the semiconductor chip shortage, a lack of mechanical parts has also caused rolling shutdowns of vehicle assembly plants. Also, the ongoing Coronavirus (COVID-19) outbreak led to closures.
Is Ford in trouble?
Ford isn’t in trouble yet, but temporarily shutting down the production of the 2021 Ford F-150 is a new obstacle to face. As assembly plants closed due to Covid-19, wafer and chip suppliers diverted parts to other sectors.
Chips went to consumer electronics, which weren’t expected to have an increase in stay-at-home orders. As people work from home, they want the news computers and tech, including the PS5.
Ford lost about 50 percent of its planned production in the second quarter. According to the AlixPartners Consulting Firm, the global automotive industry is expected to lose $100 billion in revenue for 2021.
People still want their new Ford F-150 models and other vehicles. So when will the global chip shortage end? Fires in factories, droughts, and the transportation blockage in the Suez Canal have contributed to the deficit.
People have been investing in maximizing chip production space. Also, chips will be made in America, as it’s currently only responsible for providing 10 percent of the supply Americans use. Two new factories are being built in Arizona.
The chip shortage might rebound by the end of 2021 but could last into 2022. Also, experts fear that the semiconductor chip shortage could last until 2023. Increased demand for electronics could increase the shortage.