Ford Motor Company is going to minimize production of some important products following the existing problem of chips shortage. Production cut for was confirmed Ford Bronco and Explorer SUVs, the Ford Mustang Mach-E electric crossover, the Ford F-150 and Ranger pickups, and the Lincoln Aviator SUV at plants in Michigan, Illinois, Missouri and Mexico was confirmed on Friday.
The shrunken production happens due to lingering shortage of semiconductor chips. The automobile manufacturer couldn’t gain Wall Street’s expected earnings because of the production which was less than expected. It caused a drop of 9.7% in shares on Friday.
The statement by the company revealed Ford’s North American plants are impacted by shortage of semiconductor chips in the world. It added our teams are committed to increasing production and provide the customers with high-quality vehicles in great demand.
Automakers and other industries are continually struggling with this issue although anticipations denote a slow boost in chips supply this year. In 2021, Ford sold up 1.9 million vehicles in the United States, conducting through the global issue. The auto firm and other automobile manufacturers had to cease their plants on and off as a result of parts shortage. Ford’s stock decreased by 13.5% in 2022 compared to a rise by almost 140% a year before.