Ford F-150 Production Update: Trucks Built Without Certain Parts

Ford Adjusts Production Amidst Chip Shortage and Supply Chain Disruptions

On Thursday, Ford Motor Company announced adjustments to its production schedule. Certain Ford F-150 pickup trucks and Edge crossovers will be manufactured without specific electronic modules.

This decision stems from a combination of factors: the ongoing global semiconductor shortage and disruptions to the parts supply chain resulting from a recent winter storm.

Temporary Vehicle Storage and Shift Cancellations

Ford plans to complete these vehicles and store them for several weeks. Shipment to dealerships will commence once the necessary modules are secured and rigorous quality control procedures are finalized.

Furthermore, shifts scheduled for tonight and Friday at the Louisville Assembly Plant have been canceled due to the shortage of semiconductor-related components.

Production of the Escape and Lincoln Corsair is anticipated to resume on Monday with reduced staffing levels. Full production capacity is expected to be restored by Tuesday.

Industry-Wide Impact of the Chip Shortage

Ford is not the only automaker facing these challenges. General Motors (GM) revealed earlier this week that select pickup trucks would be built without a fuel management module.

The absence of this module will affect the fuel efficiency performance of these vehicles, preventing them from reaching their optimal fuel economy.

Financial Implications

Both Ford and GM have previously communicated that the chip shortage will negatively impact their financial performance throughout 2021.

Ford estimates that a prolonged shortage extending into the first half of 2021 could reduce its earnings by $1 billion to $2.5 billion. This figure accounts for potential cost recoveries and anticipated production increases in the latter half of the year.

GM indicated in February that the global semiconductor scarcity will have a short-term effect on its production volumes, earnings, and cash flow for the current year.

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