The global semiconductor chip shortage is further crippling the pickup truck industry, notably Ford. The country’s largest-selling truck manufacturer is again cutting its production of the F-150 and two other vehicles.
With the lack of adequate semiconductors, Ford will close its Oakville Assembly Plant in Ontario, Canada, and Kansas City Assembly Plant in Missouri, beginning Aug. 30.
The Oakville plant builds the Ford Edge and Lincoln Navigators. The F-150 is assembled in Kansas City.
No chips, production slows
Ford also will cut two of three shifts next week at its Dearborn Truck Plant in Michigan, which produces the F-150.
“Our teams continue making the most of our available semiconductor allocation, finding unique solutions to provide as many high-quality vehicles as possible to our dealers and customers,” the company said in a press release.
The Kansas City plant was already down this week due to the chip shortage.
Semiconductors are used in numerous vehicle technology systems, from onboard computers to LED dashboard displays.
The parts shortage has caused rolling shutdowns of automotive assembly plants globally throughout this year. Ford has been hit particularly hard by the lack of chips, losing about 50 percent of its planned production in the second quarter.
The shortage dates to early last year when COVID caused rolling shutdowns of assembly plants. As the facilities closed, the wafer and chip suppliers diverted the parts to other sectors such as consumer electronics, which weren’t expected to be as hurt by stay-at-home orders.
The problem is expected to cost the global automotive industry $110 billion in revenue in 2021, according to consulting firm AlixPartners.
Pending new truck buyers have reported limited availability at dealerships throughout the United States.
James Raia, a syndicated columnist in Sacramento, California, publishes a free weekly automotive podcast and electronic newsletter. Sign-ups are available on his website, www.theweeklydriver.com. He can be reached via email: email@example.com.