Ford limits production at North American plants due to chip shortages

Deepak Gupta February 5, 2022
Updated 2022/02/05 at 10:38 PM

Stop us if you’ve heard this before, but a North American automaker is about to temporarily reduce its production due to the ongoing . A Ford spokesperson said Reuters on Friday, the automaker would cut or suspend production at eight of its factories in the US, Mexico and Canada. The shutdown will begin on February 7. Among other facilities, the decision will affect the Kansas City plant, where Ford makes the F-150, one of its most popular and profitable vehicles.

This isn’t the first time Ford has done this, nor was it the only automaker affected by the situation. Last September, General Motors temporarily stopped all but four of its North American plants amid component shortages. Earlier this year, the US Commerce Department warned that semiconductor-related supply restrictions would last at least until the . “We’re nowhere near being out of the woods,” Department Secretary Gina Raimondo said at the time.

Companies like Ford have taken steps to address the problem. In November, the company with GlobalFoundries to increase semiconductor production in the US, but the automaker likely won’t benefit from that deal for a while. Meanwhile, Ford said Reuters it expects its production volume to “improve significantly” in the second half of the year.

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