An employee is working on an engine at Ford Motor Co. Super Duty Truck at the Ford Kentucky Truck Plant in Louisville, Kentucky, September 30, 2016.
Luke Charette Bloomberg | Getty Images
Ford Motor is once again cutting production of high-profit trucks and SUVs due to the continuing global shortage of semiconductor chips, which has been wreaking havoc in the automotive industry for more than a year.
On Thursday, Ford confirmed a shutdown next week for Ford Expedition and Lincoln Navigator Ford Super Duty pickups and SUVs at a Kentucky plant and medium-duty trucks and chassis cabs at an Ohio plant.
The Detroit-based automaker has suffered one of the biggest impacts of a shortage of parts, leading to sporadic shutdowns of factories in the industry.
The fact that Ford is cutting back on pickup and SUV production shows that carmakers continue to grapple with the problem, although many in the industry expect a gradual improvement in chip supply in 2022.
The chip shortage dates back to early 2020, when Covid caused a continuous shutdown of vehicle assembly plants. As the facilities closed, chip suppliers redirected parts to other sectors, such as consumer electronics, which were not expected to be so affected by home orders.
Automakers are struggling with chip shortages in addition to other supply chain constraints and emerging impacts from Russia’s invasion of Ukraine, which could further strain supplies.
The cuts in production also came after Ford unveiled plans to split its electric vehicle and legacy car business into two units in a bid to streamline and increase EV production.