Difficulties in obtaining semiconductor chips will prompt Ford Motor to temporarily halt or scale back auto production at eight plants in North America, the company said Friday, according to reports.
The announcement by the major U.S. automaker – set to take effect next week — continued a series of supply-chain setbacks that have affected the nation’s economy in recent months. Ford had warned Thursday that a lack of chip availability would likely hurt production in the company’s current financial quarter, Reuters reported.
Plants expected to see work suspended by Ford’s decision include those in Michigan, Chicago, and Cuautitlan, Mexico, according to Reuters. Also affected will be plants in Kentucky and Oakville, Ontario, Canada, Reuters added.
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.