Ford builds pickups without computers for lack of chips Economy

DETROIT – The global semiconductor shortage and last February’s winter storm combined to force Ford to build its F-150 pickups without some of its computers.

The vans will remain in the factories for “a few weeks,” and will be shipped to dealerships once the computers are available and quality reviews are conducted, the company reported Thursday.

The global shortage of semiconductors also forced Honda and Toyota this week to announce production cuts at some of their plants in North America. Similarly, General Motors has been forced to make pickups that do not have some of its computers and install them later.

It is possible that the measure taken by Ford will reduce the inventory of F-Series vans, the best-selling vehicle in the United States. Stocks are already low due to high demand and production losses related to last year’s factory closure due to the coronavirus pandemic.

Ford also announced that it will build the Edge pickup truck without its computers and ship them later, in addition to canceling some Thursday and Friday shifts at an assembly plant in Louisville, Kentucky, where the Ford Escape pickup is manufactured.

Automotive companies have said they do not expect chip shortages to improve before the third quarter of the year. Ford has said the shortage could reduce its pre-tax earnings by $ 1 billion to $ 2.5 billion, even if it offsets some of the production lost in the second half.

Volkswagen, Fiat Chrysler (now Stellantis) and Nissan also claim that they have been affected by the shortage and have been forced to delay production of some models in order to maintain operations in other factories.

Industry officials say semiconductor companies diverted production to consumer electronics during the pandemic’s lowest car sales point last spring. Automotive companies around the world were forced to close factories to prevent the spread of viruses. Once recovered, they did not have enough chips due to the high demand for personal electronics.

.Source