Michael Wayland | CNBC
The automaker on Friday confirmed production downtime next week for the Ford Bronco and Explorer SUVs; the Ford F-150 and Ranger pickups; the Ford Mustang Mach-E electric crossover; and the Lincoln Aviator SUV at plants in Michigan, Illinois, Missouri and Mexico due to the parts shortage.
The automaker also is cutting some productions of the F-150 and Ford Transit cargo vans at plants in Michigan and Missouri.
The cuts signal the chip shortage that devastated the auto industry last year continues to linger. They come a day after Ford significantly missed Wall Street’s earnings expectations due to lower-than-expected production caused by the supply chain issues, causing shares to tumble 9.7% on Friday.
“The global semiconductor shortage continues to affect Ford’s North American plants – along with automakers and other industries around the world,” Ford said in an emailed 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.”
The fact that Ford is cutting some of its most profitable and in-demand models such as the Bronco, Mach-E and F-150 shows automakers continue to battle with the problem despite many in the industry expecting a gradual improvement in the supply of chips in 2022.
Ford sold 1.9 million vehicles in the U.S. in 2021, down by 6.8% as it managed through a global shortage of semiconductor chips. The parts problem forced Ford and other automakers to sporadically shutter plants and depleted vehicle inventories.
After increasing by roughly 140% in 2021, shares of Ford are down by 13.5% this year.
Read More: Chip shortage forces Ford to cut production of F-150, Bronco SUV