Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Ford Motor has decided to shut down several of its factories in North America for a few weeks in July and August. The automaker’s plants in Chicago, Kentucky and Kansas City, among others, will be shuttered amid the global shortage of semiconductors.


The announcement comes at a time when auto manufacturers worldwide are seen grappling with an extended period of chip shortage. The crunch has also impacted manufacturers of household appliances. 


The company, along with the manufacturing of new vehicles, is prioritizing the completion of pre-assembled vehicles that were left incomplete due to the unavailability of certain parts due to the global shortage of semiconductors.


The Michigan plant, which recently launched Ford Bronco and manufactures the Ford Ranger, will be shut for two weeks in July due to the shortage of auto parts. This closure, though, is unrelated to the global crunch of semiconductors, the company said.


In April, the company had said that the shortage of chips would cost it $2.5bn this year and reduce annual production by 50pc. 

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