Chip shortage continues to affect the major automakers of the United States. Compelling the vehicle giant Ford to halt its vehicle retail production and sales in the North American region as the media reported on Feb 5.
Several news outlets including Fox News reported that Ford is planning to suspend its entire vehicle production including customers’ favorite Explorer SUVs Ranger Pickup F-150, Ford Bronco, and the new EV Mustang Mach-E crossover at its units in Illinois, Michigan, and Mexico.
Plus, the production is likely slowed down in other locations like Kentucky, Missouri, and Michigan. However, it will completely eliminate its operations from the facilities for Ford’s Ontario, Canada.
Ford says #chipshortage will force it to halt or cut production at 8 plants: reports The announcement by the major U.S. automaker continued a series of supply-chain setbacks that have affected the nation’s economy in recent months https://t.co/oFqgCRzixW— KK_aa_RR_ii_5 (Kari) (@KKaaRRii51) February 7, 2022
The Announcement made by the US automaker is the continuation of the setback faced in recent months by the nation’s economy. According to Reuters, Ford warned that the semiconductor shortage will likely hurt the vehicle production in the manufacturer’s financial quarter.
The CNBC reporter said that Ford missed the earning’s expectations indicated by Wall Street on Thursday, which caused the 10% drop on Friday.
Appearing on Fox News on Friday, John Lawler, the chief Finance Officer Ford in the show ‘Morning with Maria’ said that they are foreseeing an ease in shortage of semiconductors later in the following year.
“That’s why we’re confident in our volumes in 2022 being up about 10 to 15%,” Lawler said.
He added; A rebound in production could help bring down auto prices that have been affected by inflation.
He also admitted that the chip shortage together with the omicron variant has put automakers in severely difficult conditions where lockdown and supplier shortages have further elevated the loss in the fourth quarter.
“We just weren’t able to reach the higher volumes that some were expecting,” Lawler told FOX Business’
Another industry magazine Automobilwoche quoted that a board member from Volkswagen said that they don’t likely see the shortage of the semiconductors coming to ease even at the end of this year. Although expecting to see an ease in shortage in the second half.
“The volatile situation will affect us at least beyond the first half of this year.” Volkswagen head of procurement, Murat Aksel told Automobilwoche in an interview.
Not only in the United States but automakers around the world are facing chip shortages due to the supply chain disruptions caused by the COVID-19 back-to-back surging variants. Plus, the soaring demands of semiconductors by the electronic manufacturers are also becoming a part of it.
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