News ID: 99781
Publish Date : 07 February 2022 - 21:46

Chip Shortage Forcing Ford to Halt or Cut Production at 8 Plants

WASHINGTON (Reuters) - Ford plans to suspend or cut production at eight of its factories following a slump in its shares, affecting the U.S., Canada, and Mexico.
The automaker warned of a chip shortage that would lead to a decline in vehicle volume in the current quarter – but a spokeswoman told Reuters Friday that the company was expecting vehicle volume to increase significantly in the second half.
Ford’s fourth-quarter earnings were lower than expected and the company forecasts a slower recovery through 2022 than its rival General Motors. The news prompted a 12% fall in its stock.
According to Reuters, the factories affected are in Michigan, Chicago and Cuautitlan, Mexico.
Overtime at its Oakville factory in Canada will be scrapped and the production will be on a single shift or reduced schedule in Dearborn, Kentucky, and Louisville, Reuters reported.
The Ford spokesperson told Reuters the changes could take effect as soon as Monday.
Insider’s Grace Dean reported in November that the U.S. has a shortage of around 80,000 truck drivers, causing havoc across the U.S. supply chain.
Ford CFO John Lawler told Fox Business Friday that he believed the chip shortage would easy in the second half of 2022.