The computer chip shortage issue is snowballing in the auto industry, slowing production of Ford Motor Co.'s most valuable product, the F-150, for at least a week.
The automaker told our sister publication Automotive News that its Dearborn Truck Plant in Michigan will drop to one shift from three the week of Feb. 8, while the truck side of a Kansas City Assembly Plant in Missouri will drop to two shifts from three. The two facilities produce the F-150 full-size pickup, which has long been Ford's main profit driver.
"The timing is especially problematic for Ford as it ramps up production and deliveries of the redesigned F-150, which went on sale late last year," AN's Michael Martinez writes.
During its annual earnings call, Ford executives said they expect the global semiconductor shortage to potentially reduce first-quarter global production between 10 percent and 20 percent, AN reported. The shortage could lower Ford’s 2021 adjusted earnings by $1 billion to $2.5 billion, executives said, adding that Ford would provide a more detailed look on how the shortfall will affect company’s earnings when it reports first-quarter results in April.
