Ford adds new July downtime at multiple North Amerian plants due to chip shortage

Rodolfo Schellin

Flat Rock Assembly Plant, which builds the Ford Mustang, will be down the months of July twelve and 19.

Hermosillo Assembly Plant, which builds the Ford Bronco Sport, will operate one particular of two shifts the months of July twelve and 19.

Kentucky Truck Plant, which builds the Tremendous Obligation, Ford Expedition and Lincoln Navigator, will be down the week of July twelve and operate two shifts the months of July 19, 26 and Aug. 2.

Louisville Assembly Plant, which builds the Ford Escape and Lincoln Corsair crossovers, will operate on a minimized timetable the week of July 19.

Oakville Assembly Complicated in Canada, which builds the Ford Edge and Lincoln Nautilus crossovers, will make the Nautilus only the months of July 19, 26 and Aug. 2.

Ford also reported that Michigan Assembly Plant, which builds the Ford Bronco and Ranger, will be down the months of July 5 and 26 owing to an unrelated portion shortage.

“The international semiconductor shortage carries on to impact international automakers and other industries in all pieces of the globe,” Ford reported in a statement. “Whilst we go on to manufacture new vehicles, we’re prioritizing completing our customers’ vehicles that were being assembled with no specific pieces owing to the marketplace-extensive semiconductor shortage. This is in line with our motivation to get our prospects their vehicles as shortly as probable and regular with our forecasted provide.”

Ford expects to reduce $2.5 billion and roughly million models of output this calendar year for the reason that of the chip shortage, which CEO Jim Farley has labeled “most likely the best provide shock” he is ever viewed. The automaker has been strike significantly tough in contrast to its rivals, in accordance to Autoforecast Remedies.

Sellers around the place are determined for inventory but have been informed that support may perhaps not appear right until August at the earliest.

In a study be aware printed earlier this week, Morgan Stanley analyst Adam Jonas interviewed an unknown dealer who reported the worst of the disaster is not in excess of.

“I don’t know how we’re looking at the worst of it when we entered this thirty day period with fifty or fifty five cars to sell,” they reported. “This thirty day period (July) we’ll have thirty cars to sell. And August we may perhaps have 5. I’d say August need to be the ‘bottom’ and if it’s not the base we’re (expletive).”

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