The Louisville plant employs 3,800 hourly workers, who will receive about 75% of their normal pay during the one-week shutdown. He assembled the Ford Escape and Lincoln’s version of this SUV, the Corsair.
“Global semiconductor shortages pose challenges and disruptions in production – including for the global automotive industry Ford (F)which could have a significant effect on jobs and the economy given the importance of car production, “he said Ford (F) in a statement.
Carmakers cut orders for computer chips early last year when the pandemic hit the brakes on car sales and production due to temporary plant closures.
When car sales returned earlier than expected, the industry struggled with a chip shortage. This has been exacerbated by increased demand for laptops during the “stay home” era and the electronics and computer industries, which are increasing the excess chips, said Christine Dzicek, vice president of research at the Center for Automotive Research, Michigan Reservoir.
“It’s temporary, but it won’t be short-term,” she said. The problems are likely to continue for the first three months or so of the year. We hope that deliveries will return to normal in the second quarter.
The average car has between 50 and 150 chips, she said. And all the chips are needed to continue assembling the cars.
The problem doesn’t just affect car factories in the United States – factories in Europe and Asia are also dealing with chip shortages.