Ford confirms that production will be rolled back at some factories next week
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Jeff Kowalsky / AFP via Getty Images
Ford Motor
on Saturday confirmed reports that it will roll back production at some of the factories from next week.
Reuters reported that Ford (ticker: F) plans to halt or cut production at eight of its factories in the United States, Mexico and Canada due to chip supply constraints. Reuters quoted a spokeswoman for the carmaker.
The changes will take place from Monday, Ford told Reuters.
In an email to Barrons Reporter Al Root, a Ford spokesman, said there would be “stops in some places next week”, but that he did not have all the details.
“Of course the latest in a series over several years in the industry. Informed Q1 volume guidance we provided on Thursday. Affected colleagues were notified in local communications in recent days,” the Ford spokesman wrote in an email.
Ford shares fell 9.7% on Friday after the company reported weaker-than-expected fourth-quarter results and inline financial guidance for 2022 that disappointed investors.
Ford CEO Jim Farley acknowledged supply chain problems – such as a lack of semiconductors – at the automaker in an interview with Barrons Friday, saying the shortage contributed to rising costs and limiting production.
But Farley said these problems will eventually resolve themselves, partly because the global economy is returning to normal and partly because the company is working to make the supply chain more robust by adding more engineering and redesign features.
Reuters reported that production at factories in Michigan, Chicago and Cuautitlan, Mexico, will be suspended as of Monday. A single shift or reduced schedule will be run at the company’s factories in Dearborn, Michigan and Louisville.
In Kansas City, production of Ford’s F-150 pickups will idle while one shift will run to produce Transit vans, according to Reuters.
CNBC also reported that Ford would cut production next week due to a shortage of parts. The carmaker told CNBC that there would be downtime next week for the Ford Bronco and Explorer SUVs; Ford F-150 and Ranger pickups; Ford Mustang Mach-E electric crossover; and Lincoln Aviator SUVs at factories in Michigan, Illinois, Missouri and Mexico.
Write to Joe Woelfel at joseph.woelfel@barrons.com
