Ford Motor Company F shares dropped about 8% this week following the lackluster quarterly results the automaker reported. Now comes news that Ford is planning to suspend or cut production at eight of its North American factories throughout this week, according to Reuters, citing a company spokeswoman.
The predicament was blamed on chip supply constraints that have continued to plague the auto industry since the onset of the pandemic.
The factories impacted would be the ones located in Michigan, Chicago and Cuautitlan, Mexico, with production at these locations standing suspended, the report said.
The automaker plans to run a single shift or a reduced schedule at its Ford Dearborn, Ford Kentucky and Ford Louisville plants, the report said. Overtime at its Oakville factory in Canada will be scrapped, it added.
The company, however, expects volume production to "improve significantly" in the second-half.
One of the much-awaited EV launches of the year is the F-150 Lightning truck, given it will be enjoying a nearly first-mover advantage. The company has also been hinting at abounding reservations. Given the evolving scenario, it remains to be seen if Ford can ramp production to meet the demand.
Correction: The Ford F-150 Lightning is built exclusively at the Rouge Electric Vehicle Center in Dearborn, Michigan, and not Kansas City as previously stated.
Photo: Courtesy of media.ford.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.