Detroit Revises Assembly Routine Due to Semiconductor Shortage
On Thursday, Ford issued a statement explaining that some of its vehicles will be manufactured without the electronic modules dependent on semiconductors. While the automaker faulted the global semiconductor shortage, it also made mention of the winter storms from last month. A few shifts will reportedly be cut until supply chains stabilize while other lines will be constructing vehicles minus some electronics. The plan is for Blue Oval to hold onto them until more chips come in, minimizing production losses.
General Motors proposed a similar solution last week and has since started building 2021 light-duty full-size pickups without a fuel management module.
“Due to the global shortage of semiconductors impacting the global auto industry, we are making Active Fuel Management/Dynamic Fuel Management unavailable on certain 2021 model year full-size trucks,” said GM spokesperson Michelle Malcho.
Frankly, the trend of putting unfinished products on the road isn’t our favorite. But the industry seems willing to sell a vehicle without certain features when the alternative is not selling one at all. Ford may not be adept at predicting the future, but it should at least be commended for waiting to put finished automobiles on the market.
From Ford:
The global semiconductor shortage — combined with parts shortages created by the central U.S. winter storm in February – is prompting Ford to build F-150 trucks and Edge SUVs in North America without certain parts, including some electronic modules that contain scarce semiconductors. Ford will build and hold the vehicles for a number of weeks, then ship the vehicles to dealers once the modules are available and comprehensive quality checks are complete.
Ford is canceling the night shift today and both shifts Friday at Louisville Assembly Plant due to a semiconductor-related part shortage. Ford Escape and Lincoln Corsair production is expected to resume Monday on short shifts, with full production scheduled to resume Tuesday.
In addition, we are taking further down days at our Cologne plant, suspending Fiesta production March 1-16 as well as March 22.
The automaker said that, if the semiconductor shortage scenario persists through the first half of 2021, that Ford’s adjusted EBIT could backslide by up to $2.5 billion. General Motors also predicted a $2 billion loss if chips availability doesn’t improve, adding that production at Fairfax and CAMI would remain shuttered until mid-April. The company is also extending downtime at San Luis Potosi through the end of March.
[Image: ehrlif/Shutterstock]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Will it get worse now that we've sassed China?
GM will place incomplete vehicles on the market for sale. I'm confused, haven't they been doing this for something like the past 60 years?