Ford curtails production at some North American plants due to parts shortages

Jordyn Grzelewski
The Detroit News

Ford Motor Co. continues to see production impacts tied to the global semiconductor shortage and other supply-chain constraints.

The Dearborn automaker confirmed its Flat Rock Assembly Plant, which builds Mustangs, will be down through next week due to parts shortages tied to the chip shortage. And Transit production at its Kansas City Assembly Plant in Missouri will be down through the weekend.

"The global semiconductor shortage continues to affect Ford's North American plants — along with automakers and other industries around the world," Ford spokesperson Kelli Felker said in a statement. "Behind the scenes, we have teams working on how to maximize production, with a continued commitment to building every high-demand vehicle for our customers with the quality they expect."

Meanwhile, Ford's Cuautitlan Assembly Plant in Mexico — which assembles the electric Mustang Mach-E — also is down through the weekend due to an unrelated part shortage, the company said.

The semiconductor shortage has disrupted auto production worldwide for more than a year.

Earlier this week, Ford executives attributed what they characterized as a "mixed" financial performance in the first quarter in part to the chip shortage. 

The company posted a $3.1 billion net loss due to a mark-to-market loss it took on its investment in electric-vehicle startup Rivian Automotive Inc. Pretax earnings, which don't take into account special items like the stake in Rivian, were down 41% year-over-year to $2.3 billion in the first quarter.

"We didn't have enough chips to build the vehicles customers wanted and couldn't take full advantage of our manufacturing capacity," Chief Financial Officer John Lawler told reporters Wednesday.

Still, Ford expects chip supplies to improve later this year, and it maintained its full-year earnings guidance.

Twitter: @JGrzelewski