Ford F-150, Mazda see further production cuts due to chip shortage

Ford is preparing to reduce its Dearborn Truck plant to a single shift because of the global chip shortage, choking production of its highest-volume product, the F-150 pickup. 

Automotive News reports that Ford will completely idle its Kansas City Assembly facility next week — the same time Dearborn will be down to just one shift. Ford said the production issues could reduce available inventory by 1.1 million vehicles this year.

Meanwhile, Mazda expects the semiconductor crunch to affect around 100,000 of the Japanese automaker’s vehicles globally during the fiscal year. Mazda said it will will fully leverage available inventory to mitigate the impact of its production shortfall, but dealers will still be short some 70,000 units when all is said and done. 

The worldwide shift to remote work and learning during the pandemic had boosted demand for laptops and other gadgets, exacerbating a global chip shortage. The shortfall will cost automakers $110 billion in lost revenues this year, up from a prior estimate of $61 billion, consulting firm AlixPartners said, forecasting the crisis will hit the production of 3.9 million vehicles.

Automobiles depend on chips for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking.

This article contains reporting by Reuters.

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