Ford To Cut Shifts, Make F-150 Trucks Without Specific Parts Amid Chip Shortage

The global semi-conductor shortage is taking its toll on Ford’s production.

The company says it will move forward with production plans on its F-150 pickup trucks and Edge crossovers despite not having the semi-conductor chips it planned on using.

Ford plans to build and hold its vehicles for a number of weeks. It will later ship them to dealers once the electronic modules are available and quality checks have been completed.

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In addition, the company is cancelling some shifts at its plant in Louisville, Kentucky assembly plant to help manage the supply shortage. It expects production of the Ford Escape and Lincoln Corsair to resume on Monday with shorten shifts.

This is the latest setback for the Louisville Assembly Plant. It was also shut down for four weeks during the first two months of the year, leaving 3,900 hourly workers without pay amid supply shortages.

GM Feels Semi-Conductor Shortage Too

GM meanwhile, said earlier in the week, that it too would produce vehicles without some parts. In GM’s case, it will produce vehicles without a fuel management module, a device that enables top fuel economy performance.

Both companies have issued guidance that the semi-conductor chip shortage will effect 2021 financial results.

Ford, meanwhile, is also under fire from the United Auto Workers Union for allegedly planning to move some production out of Ohio to Mexico.

At midday Friday, shares of Ford (F) traded up nearly 3% at $12.85 per share, while shares of General Motors (GM) were up 1.2% at $59.97 a share.

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