Photo: Ford
The crisis that shall not be named is partially responsible for the biggest problem of the automotive industry right now. Semiconductors are used in microchips, every car features microchips, but supply currently doesn’t match demand.
Many people have been working or studying from home during the past year and a half, which is why computer and phone sales have shot up over 2019 levels. That has only exacerbated the problem, along with the limited number of companies that produce microchips for the automotive industry.
The Ford Motor Company has been seriously affected by the shortage, and one example in this regard is how the F-150 rolls off the assembly line without these vital microchips. Dealer stocks are getting dangerously low due to the semiconductor mishap, and they’ll keep going down because the Dearborn Truck Plant will drop one of three shifts in the week of May 24th.
According to the Detroit Free Press, the Louisville Assembly Plant in Kentucky where the Escape and Corsair are manufactured will be down that week. Considering that the Escape is the second-best-selling crossover sold by Ford in the United States after the Explorer, it’s easy to understand why FoMoCo dealers are worried about their near-future stock of new vehicles.
Thad Szott of the Szott Auto Group told the cited publication that his dealership is already at dire levels. “If you find a car in stock and you want to think about it overnight, more than likely you're going to lose the car," he said. "People are more concerned about availability than price right now."
According to Szott, the shortage is getting so bad that Ford offers a $500 rebate if the dealership orders a vehicle. It’s not known when the Ford Motor Company will stabilize the supply chain, but in the meantime, you can expect new vehicle prices to surge as a result of dwindling dealer stock.
According to industry experts, the global automotive industry could lose $110 billion and 3.9 million vehicles this year alone. Ford could lose anything between $1.0 billion to $2.5 billion in terms of adjusted EBIT, but head honcho Jim Farley is adamant the crisis should be over by the third quarter.
The Ford Motor Company has been seriously affected by the shortage, and one example in this regard is how the F-150 rolls off the assembly line without these vital microchips. Dealer stocks are getting dangerously low due to the semiconductor mishap, and they’ll keep going down because the Dearborn Truck Plant will drop one of three shifts in the week of May 24th.
According to the Detroit Free Press, the Louisville Assembly Plant in Kentucky where the Escape and Corsair are manufactured will be down that week. Considering that the Escape is the second-best-selling crossover sold by Ford in the United States after the Explorer, it’s easy to understand why FoMoCo dealers are worried about their near-future stock of new vehicles.
Thad Szott of the Szott Auto Group told the cited publication that his dealership is already at dire levels. “If you find a car in stock and you want to think about it overnight, more than likely you're going to lose the car," he said. "People are more concerned about availability than price right now."
According to Szott, the shortage is getting so bad that Ford offers a $500 rebate if the dealership orders a vehicle. It’s not known when the Ford Motor Company will stabilize the supply chain, but in the meantime, you can expect new vehicle prices to surge as a result of dwindling dealer stock.
According to industry experts, the global automotive industry could lose $110 billion and 3.9 million vehicles this year alone. Ford could lose anything between $1.0 billion to $2.5 billion in terms of adjusted EBIT, but head honcho Jim Farley is adamant the crisis should be over by the third quarter.
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