As you might know, the global semiconductor woes have crippled the automotive industry, forcing major OEMs to halt their manufacturing operations. However, Ford said that it’ll continue to build F-150 trucks and Edge SUVs in North America without certain parts, including some electronic modules that require semiconductors. Ford will build and hold the vehicles for a number of weeks, until the modules are available and comprehensive quality checks are done. Which means, the dealers and the customers may have to wait.
Ford also said that it is cutting down night shifts at Louisville assembly plant for the same, semiconductor-related part shortage. The Escape and Lincoln Corsair production is expected to resume Monday (22 March) on short shifts, with full production scheduled to resume on Tuesday. In addition, Ford is cutting down production at its Cologne plant, temporarily suspending Fiesta production until March 22, 2021.
If the semiconductor shortage scenario is extended through the first half of 2021, the shortage could adversely impact Ford’s adjusted EBIT by between $1.0 billion and $2.5 billion, net of cost recoveries and some production make-up in the second half of the year, the company said in an official statement.