Bronco SUVs in manufacturing at Ford’s Michigan Meeting plant, June 14, 2021.
Michael Wayland | CNBC
DETROIT – Ford Motor is slicing manufacturing subsequent week of a number of key merchandise resulting from an ongoing international scarcity of semiconductor chips.
The automaker on Friday confirmed manufacturing downtime subsequent week for the Ford Bronco and Explorer SUVs; the Ford F-150 and Ranger pickups; the Ford Mustang Mach-E electrical crossover; and the Lincoln Aviator SUV at vegetation in Michigan, Illinois, Missouri and Mexico as a result of elements scarcity.
The automaker is also slicing some productions of the F-150 and Ford Transit cargo vans at vegetation in Michigan and Missouri.
The cuts sign the chip scarcity that devastated the auto business final 12 months continues to linger. They arrive a day after Ford considerably missed Wall Street’s earnings expectations resulting from lower-than-expected manufacturing attributable to the provision chain points, inflicting shares to tumble 9.7% on Friday.
“The worldwide semiconductor scarcity continues to have an effect on Ford’s North American vegetation – together with automakers and different industries all over the world,” Ford stated in an emailed assertion. “Behind the scenes, we’ve got groups engaged on how one can maximize manufacturing, with a continued dedication to constructing each high-demand car for our clients with the standard they count on.”
The truth that Ford is slicing a few of its most worthwhile and in-demand fashions such because the Bronco, Mach-E and F-150 exhibits automakers proceed to battle with the issue regardless of many within the business anticipating a gradual enchancment within the provide of chips in 2022.
Ford bought 1.9 million autos within the U.S. in 2021, down by 6.8% because it managed by a worldwide scarcity of semiconductor chips. The elements drawback compelled Ford and different automakers to sporadically shutter vegetation and depleted car inventories.
After growing by roughly 140% in 2021, shares of Ford are down by 13.5% this 12 months.