Wednesday, May 19, 2021

Ford to Lose 50% of Q2 Production Due to Chip Shortage

Ford Motor is looking to pause vehicle manufacturing at eight North American factories at different periods through the month of June due to an ongoing shortage of semiconductors, which is expected to cut the company's production outputs in the second quarter of 2021 by half, CNBC reports citing an obtained internal memo.

In the second half of the year, the company is expecting to lose 10% of its production. Meanwhile, in total in 2021 the chip shortage will have prevented Ford from producing nearly 1.1 million vehicles, ranging from the Ford Mustang and Escape crossover to the highly profitable F-150 pickup and Bronco Sport SUV. The manufacturing halt is estimated to cost the carmaker around $2.5 billion.

"Our teams continue making the most of our available semiconductor allocation and will continue finding unique solutions to provide as many high-quality vehicles as possible to our dealers and customers," Ford said in the emailed memo.

This is yet another example of limited supply in the economy that will put upside pressures on prices.



  1. Makes one wonder how fast is Henry Ford spinning in his grave?

  2. This is not necessarily a bad thing. Too much auto automation has been a bad thing for a while. Let the TBTF car makers sweat.