Over the past year, we’ve had a chip crisis in many places, from consumer electronics to automobiles. Companies are facing this problem due to the shortage of raw materials, especially the shutdowns and production line disruptions brought about by the pandemic.
In fact, some companies had to decide to stop production more than once in the past year. Now, due to the chip crisis, Ford has announced that it will stop production of its most loved vehicle for a while. Here are the details…
Ford halts production at 8 plants due to chip crisis
The global chip crisis reappears whenever it is thought to have been overcome. This time, the unfortunate name was Ford. A company spokesperson recently said it will halt or drastically reduce production at eight of its plants in the US, Mexico and Canada.
In addition, it is stated that this decision taken by Ford will take effect as of February 7. In addition, the company says it will stop production at its Kansas plant, where it produces one of its most popular and profitable vehicles, the F-150.
This won’t be Ford’s first fight with the chip crisis. Nor will it be the only one affected. In September last year, General Motors temporarily suspended production at all but four of its North American plants due to component shortages.
At the beginning of the year, the US Department of Commerce warned that supply restrictions on semiconductors would last until at least the second half of 2022. “We’re not even close to getting out of the woods,” said Department Secretary Gina Raimondo.
In fact, manufacturers like Ford acted early to fix the problem. In November, the company announced a strategic partnership with GlobalFoundries to increase US semiconductor production. But the automaker probably won’t benefit from this arrangement for a while. Still, the company said they expect the situation to improve significantly in the second half of the year.
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