Car production stumbles again with a global chip shortage

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Ford Motor has announced a new series of factory shutdowns due to a global semiconductor chip shortage, and the latest measures include five plants in the United States and one in Turkey.
The second-largest US auto maker did not mention the size of the production cut resulting from its latest steps, and renewed its intention to disclose the financial impact of the chip shortage when announcing its quarterly results on April 28, which may indicate a greater impact than the initial estimates.
Ford had said in March that it expected the cost of the semiconductor shortage to be between $ 1 billion and $ 2.5 billion.
While the company has prioritized the supply of chips for its more profitable cars, it has sometimes had to halt production of its best-selling truck, F-150, and even put some of it into storage for final assembly at a later time when the chips are available in sufficient quantities.
Semiconductors are used extensively in cars, for functions such as monitoring engine performance, managing steering or electric windows, and in parking sensors and entertainment systems.
Also due to a shortage of chips, Japan’s Nissan Motor announced that it would reduce working hours at its factories in the United States, and Honda Motor said it may reduce production of some of its American factories from April 19.
German Volkswagen decided to stop production of its Tiguan at its plant in Puebla, Mexico, for two days.
Auto industry officials say the shortage will worsen in the second quarter of the year compared to the first quarter. GM has previously said it expects the chip shortage to cut profits by up to $ 2 billion.
It is unclear whether the supply of chips will improve during the third quarter, nor if the automakers will be able to make up for lost production later this year.
(Reuters)




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