Ford is stopping production at its Chicago assembly plant on the Southeast Side because of the ongoing computer chip shortage YouTube Tips ⓘ
Ford Motor Company has stopped production at the Chicago Assembly Plant at 12600 South Torrence Avenue as a result of an ongoing global chip shortage. The plant manufactures the Lincoln Aviator Sport and Ford Explorer, including the Police Interceptor Utility — a version of the Ford Explorer that is the most commonly used police vehicle in the United States.
The plant normally operates 24 hours per day, and employs over 4,000 people.
Many automotive suppliers have run factories nearby in the Hegewisch neighborhood near Avenue O and 126th Place — northeast of the Ford Chicago Assembly Plant. In 2019, Autokiniton US Holdings, Inc., acquired Tower International, Inc. (Tower), a leading Tier 1 manufacturer of structural metal automotive components and supplier of metal stampings, welded assemblies, frame structures, and chassis structures — supplying structures for small and large cars, crossovers, pickups, and sport utility vehicles.
The chip shortage has been a persistent problem for automobile manufacturers for over a year. On March 18, 2021, Ford provided an updated describing the global semiconductor shortage.
- 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 costs tied to these actions are covered in the financial updates we previously provided. We said that if the semiconductor shortage scenario is extended through the first half of 2021, the shortage could adversely impact Ford’s adjusted EBIT by between $1.0 billion and $2.5 billion, net of cost recoveries and some production make-up in the second half of the year
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