Ford cut production of the nation’s top-selling pickup and Ford’s most profitable vehicle: The F-150. The automaker is dropping one shift from its truck plants in Dearborn, Michigan, and Kansas City, Missouri, with both sites expected to resume full production starting on 15 February 2021. Ford’s headache caused by the shortage has now grown into a migraine as deliveries of the redesigned F-150 dropped 5% in January.
In February 2021, it was already predicted that the chip shortage would dent global car industry production by about 672,000 vehicles in the first quarter, with problems lingering into the fall. Also, the lead times for chips used in the auto sector typically are 26 weeks.
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Ford forced to cut profitable F-150 pickup truck production due to semiconductor chip shortage
- Ford is cutting production at plants in Missouri and Michigan that produce its profitable F-150 pickup trucks due to a global semiconductor chip shortage
- The shortage began impacting the global automotive industry in late 2020
- Semiconductors are extremely important components of new vehicles, for areas ranging from infotainment systems to more traditional parts such as power steering
- Ford has cut production schedules for several SUV models, including the Explorer, built at its factory in Chicago
The only thing that impacts F-Series sales is if Ford, for some reason, cannot make enough trucks to meet demand (That happened in March). The pandemic forced automakers to stop making vehicles for a brief time and subsequently affected Ford’s North American profits.