Autos

Ford cutting shifts, partially building F-150 pickups and Edge SUVs due to chip shortage

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Key Points
  • A global shortage of semiconductor chips is causing Ford to cancel shifts at two plants and build F-150 pickups and Edge SUVs without certain parts.
  • The automaker plans to complete the assembly of the vehicles in "a number of weeks" when the parts, including some electronic components with semiconductors, are available.
  • Ford has said the shortage could lower its earnings by $1 billion to $2.5 billion this year.

In this article

Ford Motor Co. displays a new 2021 Ford F-150 pickup truck at the Rouge Complex in Dearborn, Michigan, September 17, 2020.
Rebecca Cook | Reuters

Ford Motor on Thursday said the global shortage of semiconductor chips and winter storms impacting the availability of other parts in the U.S. are causing it to cancel shifts at two plants and build F-150 pickups and Edge SUVs without certain parts.

The automaker plans to complete building the F-150 and Edge models in "a number of weeks" when the parts, including some electronic components with semiconductors, are available. The number of vehicles impacted is expected to be "in the thousands," according to a Ford spokeswoman. She declined to be more specific due to the volatility of the chip shortage.

The production cancellations include three shifts through Friday at a plant in Kentucky that produces Ford Escape and Lincoln Corsair crossovers. Ford also confirmed downtime earlier this month as well as a day next week at a plant in Germany that produces the Ford Fiesta car, which is no longer sold in the U.S.

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Fmr. Ford CEO on the impact of chip shortages on the auto industry

Ford's actions are the latest as the auto industry attempts to deal with the global chip shortage. Consulting firm AlixPartners estimates the chip shortage to cut $60.6 billion in revenue from the global automotive industry this year.

Ford has said the chip shortage could lower its earnings by $1 billion to $2.5 billion this year.

Ford's largest crosstown rival, General Motors, previously confirmed it also is partially building some pickups in an effort to keep factories running amid the chip shortage. GM expects the chip shortage to cut $1.5 billion to $2.5 billion from its free cash flow in 2021.