Ford Plans To Idle Plant For A Week Due To Semiconductors Shortage
Ford plans to idle its plant in Louisville, Kentucky for a week due to a shortage of semiconductors in the automotive industry. The assembly plant produces the Ford Escape and Lincoln Corsair SUVs, and employs about 3,900 hourly workers, according to CNBC. Ford says a one-week shutdown of the plant had been scheduled for later in the year.
However, it will move it forward to this week instead due to the semiconductor situation. Ford is not the only motor company affected by the semiconductors shortage. Nissan says it plans to reduce production at one of its plants in Japan. The plant produces the Nissan Note. A Nissan spokesperson however says that the shortage is not affecting its US production.
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Volkswagen, Fiat Chrysler, and Toyota have also reported issues with semiconductor supply chains. Fiat Chrysler temporarily shut its factories in Canada and Mexico. Volkswagen too said in December 2020 that it had changed some production of its vehicles at plants in North America, Europe, and China.
Vehicles nowadays need more semiconductors than before for infotainment, driver assist, and Bluetooth connections. However, recently, the demand for semiconductors in the car industry has outweighed the supply.
Another issue bearing on this is the coronavirus pandemic. Factories that usually produce semiconductors have had to shut down during the coronavirus pandemic, contributing to a delay in the semiconductors. It’s not only the car manufacturing industry, but the delays have also led to a delay in the production of personal computers, and smartphones.
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