Photo: Ford
The Ford Motor Company issued a worrying press release in March over the global semiconductor crisis. The microchip shortage affects the F-150 to such a degree that FoMoCo builds trucks without certain modules.
According to the Dearborn-based automaker, this worrying state of affairs may impact the adjusted EBIT by $1.0 billion at the least and $2.5 billion at the most. Automotive News reports yet another production cut for the half-ton workhorse, spanning over the weeks of April 19th and April 26th.
The Kansas City Assembly Plant isn’t the only factory that will grind to a halt for a couple of weeks. Ford will also shutter the Chicago Assembly Plant and Flat Rock Assembly Plant, while Ohio will manufacture only the Super Duty chassis cab and Medium Duty pickup trucks in the two-week period.
Finally, the Kentucky production complex will close in the weeks of April 26th and May 3rd over the insufficient number of chips. A problem that affects many other industries other than automobile manufacturers, the semiconductor crisis has prompted the Biden administration to address the shortage with congressional funds that would support local production.
The funding would supplement a $50-billion investment in semiconductor manufacturing and research, which is the right measure to eliminate future shortages. According to Ford chief executive officer and president Jim Farley, the semiconductor crisis could be over by the third quarter. Analysts beg to differ, claiming that it may continue until the end of 2021.
In addition to the best-selling pickup truck in America, the Blue Oval is currently sitting on hundreds of thousands of firm orders for the all-new Bronco. The mid-size utility vehicle will enter production at the beginning of May if the chip-supplying companies deliver enough modules.
Toyota, meanwhile, thrives during these hard times because it learned its lesson a decade ago from the Fukushima Daiichi disaster. The Japanese automaker may have pioneered just-in-time manufacturing, but the nuclear accident prompted Toyota to amass key components to fend off any disruption in the supply chain. More to the point, the business continuity plan (BCP) requires suppliers to stockpile up to six months’ worth of chips.
The Kansas City Assembly Plant isn’t the only factory that will grind to a halt for a couple of weeks. Ford will also shutter the Chicago Assembly Plant and Flat Rock Assembly Plant, while Ohio will manufacture only the Super Duty chassis cab and Medium Duty pickup trucks in the two-week period.
Finally, the Kentucky production complex will close in the weeks of April 26th and May 3rd over the insufficient number of chips. A problem that affects many other industries other than automobile manufacturers, the semiconductor crisis has prompted the Biden administration to address the shortage with congressional funds that would support local production.
The funding would supplement a $50-billion investment in semiconductor manufacturing and research, which is the right measure to eliminate future shortages. According to Ford chief executive officer and president Jim Farley, the semiconductor crisis could be over by the third quarter. Analysts beg to differ, claiming that it may continue until the end of 2021.
In addition to the best-selling pickup truck in America, the Blue Oval is currently sitting on hundreds of thousands of firm orders for the all-new Bronco. The mid-size utility vehicle will enter production at the beginning of May if the chip-supplying companies deliver enough modules.
Toyota, meanwhile, thrives during these hard times because it learned its lesson a decade ago from the Fukushima Daiichi disaster. The Japanese automaker may have pioneered just-in-time manufacturing, but the nuclear accident prompted Toyota to amass key components to fend off any disruption in the supply chain. More to the point, the business continuity plan (BCP) requires suppliers to stockpile up to six months’ worth of chips.
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