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DETROIT – Ford Motor Co. said on Thursday that it will, for the time being, assemble its flagship, highly profitable F-150 pickups and Edge SUVs in North America without using spare parts, and drive two assembly plants due to the worldwide shortage of semiconductor chips.
The U.S. automaker said the shortage of chips, coupled with the shortage of a component caused by the Central American storm, led to the construction of the vehicles and then holding them for a number of weeks until they were completed and can be shipped. The vehicles involved count in the “thousands”, a spokesman said.
Ford said it also has a production at its factory in Louisville, Kentucky, and Cologne, Germany.
GM expands 3 installations and adds fourth due to continuous semiconductor chip discount
The costs associated with these actions are covered in the previous forecast of the company Dearborn, Michigan, that profits this year could increase by $ 1 billion to $ 2.5 billion due to the shortage of chips.
The shortage, which has hit carmakers worldwide, stems from a confluence of factors. Car manufacturers shut down plants for two months during the COVID-19 pandemic and canceled the orders for chips. Meanwhile, the demand for chips comes from the consumer electronics industry, as people work from home and play video games. Now carmakers have to compete for chips.
Ford Motor Co. said on Thursday it would temporarily mount its flagship extremely lucrative F-150 pickups and Edge SUVs without certain parts in North America and empty two assembly plants due to the global shortage of semiconductor chips. (Photo by Bea
Last month, Ford cut shifts at two plants building full-size F-150 trucks, a move that followed the production cuts of other vehicles. Ford, like other automakers, has said it will prioritize and award chips to its vehicles with the highest margin whenever it can.
General Motors Co. said Monday it is building some large, low-service pickups without a fuel management module, which shaves off a mile per gallon of fuel consumption. GM said earlier that the scarcity deficit could be reduced to $ 2 billion as a result of this year’s profit.
The Ford trucks and sports utility vehicles assembled without certain parts contain electronic modules with the rare chips, Ford said. It did not identify the suppliers of the parts involved, but a spokesman said the parts needed for the F-150 and Edge vehicles were linked to basic features, such as windshield wiper motors and infotainment systems.
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Ford cancels the late shift Thursday and both shifts Friday at its Louisville Assembly Plant, which builds the Ford Escape and Lincoln Corsair SUVs. Production is expected to resume on Monday in short shifts and the next day with full production.
In Cologne, where the Fiesta car is being built, the plant will be idle on March 1-16 and March 22. The company did not say what volume would be lost on it.