Kickstart: Chip shortage could cut Ford global auto production 20%

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.

Auto supplier Magna International Inc. is among Canadian manufacturers taking part in a coordinated pilot program to see how rapid testing can help companies keep COVID-19 out of the workplace.

The University of Toronto's Creative Destruction Lab is working with 12 top Canadian employers, using antigen tests that take about 15 minutes to deliver results, the Canadian Press reported. A "vision council" of leaders including former Magna CEO Don Walker, who retired in late 2020, formed to develop standards that can be used widely throughout a wide mix of businesses.

The study also helped to reduce screening time to 90 seconds from seven minutes.

It wasn't hard to get companies to take part because they all see the need to keep things open and safe.

"I think they look across the country and all they see is carnage. Economic carnage," Ajay Agrawal, Creative Destruction Lab founder, said.

Expect plastics to continue to be at the center of environmental discussions in Washington, D.C.

Steve Toloken writes that during confirmation hearings for Michael Regan, President Joe Biden's nominee to head the Environmental Protection Agency, Oregon Sen. Jeff Merkley was quick to ask about the Presidential Plastics Action Plan developed by environmental groups late in 2020.

Regan said he was "vaguely" aware of the plan and was careful not to make any specific commitments.

Steve is working on other stories related to plastics recycling issues on the agenda for the new administration. Keep watching plasticsnews.com for coverage.

You can read more about Regan's hearing here.