Ford Cuts Production Due To Chip Shortages

(RTTNews) - Auto giant Ford Motor Co. (F) said on Wednesday that it is cutting down its North American vehicle production in July by large numbers due to limited availability of semiconductor chips. This shortage is affecting not just Ford, but other car manufacturers as well.

The company said that it will stop or reduce production in eight plants, including six in the U.S, for different periods of time in July as well as into early August. The affected models include the Ford F-150, Ford Bronco Sport, Ford Mustang and Ford Explorer, among others.

Additionally, Ford also said that production of its Ford Ranger pickup and new Ford Bronco SUV, which recently began shipping to dealers, at its Michigan Assembly plant will be down during the weeks of July 5 and July 26 due to "an unrelated part shortage."

This decline in production numbers is the latest setback for Ford, which earlier this year said it expected to lose about 50 percent of its vehicle production in the second quarter due to the chip issue. Ford had said it expects to lose $2.5 billion in earnings and roughly 1.1 million units of production in 2021 because of the problem.

According to experts, the current semiconductor chip shortage is expected to cause the global automotive industry a loss of $110 billion in revenues this financial year.