Ford Vehicle Factory

Chip Shortage: New vehicles production will fall by 50 percent in Q4 2021 ─Ford

*The Ford Motor Company says consumers who want to buy a new Ford car or truck will likely face fewer choices and higher prices as a result of chip shortage affecting the global auto industry that is getting worse

Alexander Davis | ConsumerConnect

Against the backdrop of reported global shortage, the Ford Motor Company has said computer chip shortage that has existed since early in the Coronavirus (COVID-19) pandemic has finally created a vehicle shortage.

ConsumerConnect learnt that Ford in reporting its first-quarter 2021 earnings, showed strong sales, but warned that those numbers would fall in the current quarter because it doesn’t have enough chips.

Accordingly, the automaker warned that its vehicle production in the second quarter would be reduced by 50 percent. Output was down 17% in the first quarter.

Ford CEO Jim Farley said during the company’s earnings call, that “there are more whitewater moments ahead for us that we have to navigate.

“The semiconductor shortage and the impact to production will get worse before it gets better.”

That means consumers who want to buy a new Ford car or truck will likely face fewer choices and higher prices.

Ford CFO John Lawler also stated that the company expects 1.1 million fewer Fords will roll off the assembly line this year.

Ford stated that it has shelved plans to produce additional cars in trucks in some instances. In other cases, the vehicles are mostly complete but are warehoused as they await semiconductors to make them operational.

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