Ford Production Is Also Being Affected by Chip Shortage

Semiconductor chips are essential when it comes to the manufacturing of new cars, it is connected with several important systems of the vehicle and they allow the engine to function as it should. Although these chips are seen in electronics and other consumer products, the current shortage has been seen in a specific industry. Last year, the entire automotive industry started noticing a shortage in the availability of this key piece; the auto demand had a very rapid and unexpected peak. Because of that, many companies were affected, and the global automotive business ends up on the same boat, since they all needed semiconductors in some way or another.

Ford is one of the companies from the auto manufacturers that already started cutting production down; action had to be taken due to the semiconductor chips shortage mentioned above. While they were doing great with their very profitable F-150 truck, the production had to be lowered to only two shifts per day, one less than before. Fortunately, the two plants that dropped production are expected to go back to normal by the end of February of this year, according to Ford spokeswoman Kelli Felker. Though the shortage is no good for the production numbers, the company’s stock shares have not felt the impact yet, in fact, they surprisingly went up.

Ford is just an example, important competitors of the brand had to make similar cuts in production. Volkswagen, Subaru, Toyota, Nissan, and various others are going through the same experience, expecting to be thousands of vehicles short of what was sold last quarter. The one purpose for them right now is to keep the plants running and to minimize the impact of the shortage in their financial realm. Ford president, Kumar Galhotra pronounced himself about this matter, referring to the semiconductor shortage as a “dynamic situation”. He expressed the effort that is being done in order to find solutions as fast as possible and the concern to relieve the damage that has been done.

General Motors confirmed some changes as well, what was going to be done at certain selected plants around the globe (Fairfax, Kansas; Ingersoll, Ontario, and San Luis Potosi, Mexico, South Korea). It is noticeable how the shortage has affected the industry; it is still unknown how it will evolve in the future, is hard to know if it will get better or worse. But what we do know is the changes and effort that come from the automotive companies, solutions are on their way.

Should the chip shortage significantly impact the supply of new vehicles in the months to come, demand for vehicles is expected to grow significantly in markets such as Swapalease.com for existing vehicles.