DakotaBronco

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https://www.cnbc.com/2021/05/19/ford-to-halt-production-of-f-150-bronco-sport-due-to-chip-shortage.html

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Ford to halt production of F-150, Bronco Sport and other vehicles due to chip shortage
PUBLISHED WED, MAY 19 20212:08 PM EDTUPDATED WED, MAY 19 20212:13 PM EDT
Michael Wayland@MIKEWAYLAND
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KEY POINTS

  • Ford will halt or cut production at eight North American plants for varying periods of time through June due to an ongoing shortage of semiconductor chips impacting the auto industry.
  • Affected vehicles range from the Ford Mustang and Escape crossover to the highly profitable F-150 pickup and Bronco Sport SUV.
In this article

62-1612467950559-gettyimages-1042097492-AFP_19J0AN.jpg

This photo shows Ford 2018 and 2019 F-150 trucks on the assembly line at the Ford Motor Company’s Rouge Complex on September 27, 2018 in Dearborn, Michigan.
Jeff Kowalsky | AFP | Getty Images
DETROIT – Ford Motor will halt or cut production at eight North American plants for varying periods of time through June due to an ongoing shortage of semiconductor chips impacting the auto industry.
Affected vehicles range from the Ford Mustang and Escape crossover to the highly profitable F-150 pickup and Bronco Sport SUV, the company confirmed following an internal memo of the plans that was obtained by CNBC.
“Our teams continue making the most of our available semiconductor allocation and will continue finding unique solutions to provide as many high-quality vehicles as possible to our dealers and customers,” Ford said in an emailed statement.
[COLOR=rgba(7, 29, 57, 0)]WATCH NOW
VIDEO[COLOR=rgba(255, 255, 255, 0.8)]01:22[/COLOR]
Ford expects to lose 50% of Q2 production due to chip shortage
The shutdown announcements come a day after President Joe Biden visited a Ford plant in Dearborn, Michigan, where he voiced support for more domestic chip production so something like the current shortage doesn’t happen again.
Biden visited a new plant that will produce Ford’s upcoming electric F-150 beginning next year. It’s connected to Ford’s Dearborn Truck plant, which is one of two facilities that produce the full-size F-150 pickup.
The impacted plants are as follows:

  • Chicago Assembly Plant in illinois will be down the week of May 31 and will operate on a reduced schedule the week of June 7.
  • Flat Rock Assembly Plant in Michigan will be down the weeks of May 31 and June 7.
  • Dearborn Truck Plant in Michigan and Kansas City Assembly Plant in Missouri– truck line – will be down the weeks of May 31 and June 7 and will operate on a reduced schedule the week of June 14.
  • Hermosillo Assembly Plant in Mexico will be down the weeks of June 21 and June 28
  • Louisville Assembly Plant in Kentucky will be down starting the week of May 31 through mid-July, which includes an already-scheduled summer shutdown period.
  • Oakville Assembly Complex in Canada will be down the weeks of May 31 through June 28.
  • Ohio Assembly Plant will produce only Super Duty Chassis cabs and Medium Duty trucks the weeks of May 31, June 7 and June 14.
The cuts come weeks after Ford CEO Jim Farley warned investors that the company expected to lose about 50% of its planned second-quarter production, up from 17% in the first quarter.
Ford expects problems from the chip shortage to reduce its earnings by about $2.5 billion in 2021, the high end of its previous guidance for the year.





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Bronclahoma

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This is getting serious. Dealers have no inventory to sell. A local dealer that normally stocks 400-600 new vehicles has 70 total-- new and used. We will soon see highly leveraged dealerships going out of business. That means people lose jobs.

The automakers want to be victims, but they are responsible for their decisions to get in bed with Chinese companies, knowing the technology will be stolen and that China is an enemy of this country and all democracies. We need a short term solution and a long term. Long term is producing chips and other vital parts on this continent.
 

13MikeH

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This is getting serious. Dealers have no inventory to sell. A local dealer that normally stocks 400-600 new vehicles has 70 total-- new and used. We will soon see highly leveraged dealerships going out of business. That means people lose jobs.

The automakers want to be victims, but they are responsible for their decisions to get in bed with Chinese companies, knowing the technology will be stolen and that China is an enemy of this country and all democracies. We need a short term solution and a long term. Long term is producing chips and other vital parts on this continent.
That's what happens when policies favor cheap outsourced labor. America first is not in the current plans.
 

Jumbo1953

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Great!!! My build date was the week of 6/28. Now what? I haven’t bought a new Ford in about 20 years. Back to Toyota/Honda.
 

13MikeH

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Great!!! My build date was the week of 6/28. Now what? I haven’t bought a new Ford in about 20 years
Thats unfortunate as you are the one losing out. The sport is a great ride, at least in my opinion, and all this chaos is pushing a lot of customers away. I'd suggest if you are truly interested shop around, there is a good chance a dealer within 100 miles has or will have something close to your order. If not, perhaps down the road it's still an option if this market ever levels out.
 

Bronclahoma

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That's what happens when policies favor cheap outsourced labor. America first is not in the current plans.
Biden's proposed infrastructure bill includes $50B in subsidies for the manufacture of auto chips. Shouldn't happen. These companies already have the bailout of a lifetime. (Not Ford) As a taxpayer I don't want to subsidize their poor business decisions. There are chip shortages in several industries. I'm sure Apple, Nvidia Caterpillar and many others are wondering how the automakers got singled out for a taxpayer bailout. Read a piece in Bloomberg this morning and they said the same thing.

Relating to Broncos which is what this forum is about. What a CF their introduction of these models have been and continues to be in part to the Wuhan Virus, the chip situation and in part missed production goals. I've never been a fan boy for any product, but their are legions of Bronco fan boys who have to be getting tired of one broken promise after another. I would have likely bought a Bronco rather than a BS, but just didn't want to go through all the BS to get one.

Next big auto industry mistake will be betting the farm on EV's. Let the market sort that out. Big subsidies on EV's-- why? Federal mandates-- why. If Ford and GM were to hit their mark on EV production, we don't have the electrical grid to charge them and doubt they can produce that many batteries. And where does the electricity come from? Mostly natural gas generation. Marketing strategies that involve building what the woke automakers want customers to drive won't work. Smart retailers build what their customers want and most don't want EV's. Me included. End of rant.
 

13MikeH

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Biden's proposed infrastructure bill includes $50B in subsidies for the manufacture of auto chips. Shouldn't happen. These companies already have the bailout of a lifetime. (Not Ford) As a taxpayer I don't want to subsidize their poor business decisions. There are chip shortages in several industries. I'm sure Apple, Nvidia Caterpillar and many others are wondering how the automakers got singled out for a taxpayer bailout. Read a piece in Bloomberg this morning and they said the same thing.

Relating to Broncos which is what this forum is about. What a CF their introduction of these models have been and continues to be in part to the Wuhan Virus, the chip situation and in part missed production goals. I've never been a fan boy for any product, but their are legions of Bronco fan boys who have to be getting tired of one broken promise after another. I would have likely bought a Bronco rather than a BS, but just didn't want to go through all the BS to get one.

Next big auto industry mistake will be betting the farm on EV's. Let the market sort that out. Big subsidies on EV's-- why? Federal mandates-- why. If Ford and GM were to hit their mark on EV production, we don't have the electrical grid to charge them and doubt they can produce that many batteries. And where does the electricity come from? Mostly natural gas generation. Marketing strategies that involve building what the woke automakers want customers to drive won't work. Smart retailers build what their customers want and most don't want EV's. Me included. End of rant.
AMEN!!!! we have devolved into a society driven by instant media instead of common sense. Everything is about wokeness and preaching to the mob. This is coming to a head, and I don't fault Ford, it takes years to design and test, and create. When the Bronco/Sport concepts started we didn't have the bat flu...just unfortunate luck.
 

Huntyeraws

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Great!!! My build date was the week of 6/28. Now what? I haven’t bought a new Ford in about 20 years. Back to Toyota/Honda.
I ordered my first and last Ford back 32 years ago...a 1989 Mustang GT right out of college. That was a smooth ordering process. About 8 weeks from order to delivery. This time...not so smooth. Waiting...
 
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DakotaBronco

DakotaBronco

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Thats unfortunate as you are the one losing out. The sport is a great ride, at least in my opinion, and all this chaos is pushing a lot of customers away. I'd suggest if you are truly interested shop around, there is a good chance a dealer within 100 miles has or will have something close to your order. If not, perhaps down the road it's still an option if this market ever levels out.
I'll second what 13MikeH said. I'm loving my BS FE. I would go so far as to check with my local dealership, Sioux Falls Ford, and ask for Nick Wilson. They're a 'Nice Price' dealer meaning the sell the BS below MSRP and if you aren't trading you'll probably save enough to cover a oneway ticket.
www.siouxfallsford.com
 

Jumbo1953

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I'll second what 13MikeH said. I'm loving my BS FE. I would go so far as to check with my local dealership, Sioux Falls Ford, and ask for Nick Wilson. They're a 'Nice Price' dealer meaning the sell the BS below MSRP and if you aren't trading you'll probably save enough to cover a oneway ticket.
www.siouxfallsford.com
I wish I could do that but my son is the mayor of our town and car buying info is made public because of taxes. I have to buy from this dealer or he suffers. My only option is to buy another make in town.
 
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DakotaBronco

DakotaBronco

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I wish I could do that but my son is the mayor of our town and car buying info is made public because of taxes. I have to buy from this dealer or he suffers. My only option is to buy another make in town.
You don't want to upset the apple cart😳🙂
 

13MikeH

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This doesn't paint a great picture:

semiconductor shortage affecting much of the world’s chip production is still worsening, in at least some markets. The average lead time for chip deliveries increased to 17 weeks in April, up from 16 weeks in March. Just before the beginning of the pandemic began, average lead time was running around 12 weeks.

“All major product categories up considerably,” Susquehanna analyst Chris Rolland wrote in a recent investment note. “These were some of the largest increases since we started tracking the data.” Bloomberg notes that Susquehanna referred to this as a “danger zone” for chips as the risk of buyers engaging in behavior that magnifies the impact of the crisis increasesnoted behavior is horde buying...kinda like we saw with toilet paper, but this involves big money and chip production...it's bad.
 

johnardsg

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This is getting serious. Dealers have no inventory to sell. A local dealer that normally stocks 400-600 new vehicles has 70 total-- new and used. We will soon see highly leveraged dealerships going out of business. That means people lose jobs.

The automakers want to be victims, but they are responsible for their decisions to get in bed with Chinese companies, knowing the technology will be stolen and that China is an enemy of this country and all democracies. We need a short term solution and a long term. Long term is producing chips and other vital parts on this continent.
There has been a start in shifting this chip capacity back to US.
https://www.reuters.com/world/asia-pacific/intel-doubles-down-chip-manufacturing-plans-20-billion-new-arizona-sites-2021-03-23/
 

13MikeH

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Bronclahoma

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now if we could just get the government onboard and support US infrastructure and put trade restrictions on China...oh...wait... At least companies are trying to prevent this from happening again.
Intel CEO says their plans for the new plant don't depend on taking a dime from government. Good. I'll put my money on the private sector solving this problem. Read on Dow Jones news this morning that Commerce Secy says she doesn't support favoring automakers over other industries in regard to the chip shortages. Intel's new plant won't be in production until 2023. What is the short term solution? Don't know. Looks like we will continue to see supply shortages in many products including autos. I feel extremely lucky to have my BL. I still have one on order that is supposed to be built the second week in June. Maybe it will be built the week before the next shut down. Dealer has agreed to give to a longtime friend of mine.
 

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