Ford to Suspend or Cut Output at 8 of Its Factories Due to Chip Shortage

Ford Motor plans to suspend or cut production at eight of its factories in the United States, Mexico and Canada throughout next week because of chip supply constraints, a spokeswoman told Reuters on Friday.

The changes come a day after the Detroit automaker warned a chip shortage would lead to a decline to vehicle volume in the current quarter.

Production at factories in Michigan, Chicago and in Cuautitlan, Mexico will be suspended. In Kansas City, production of its F-150 pickup trucks will be idled while one shift will run for production of its Transit vans.

The Detroit automaker will also run a single shift or a reduced schedule at its factories in Dearborn, Kentucky and Louisville, while removing overtime at its Oakville factory in Canada.

All changes will be in place for the week beginning Feb. 7.

Ford shares slumped on Friday, after the automaker posted smaller-than-expected quarterly income and forecast a slower recovery in 2022 vehicle production than rival General Motors.

However, the company said it expected vehicle volume to improve significantly in the second half.