Ford: short-circuited by semiconductor shortage
(CercleFinance.com) - Faced with a global shortage of semiconductors - combined with a lack of parts caused by the winter storm that hit the US in February - Ford says that it will build its F-150 and Edge SUVs without certain parts, including certain electronic modules containing rare semiconductors.
As a result, the carmaker will stock its vehicles for several weeks and only ship them to dealers once the modules are available and quality checks are complete.
Production has been significantly slowed down in Louisville and production of the Fiesta has been suspended from 1 to 16 March in Cologne.
While Ford says that costs associated with these actions are covered in previously provided financial updates, with the company believing that the shortage could impact adjusted pre-tax earnings by 1 to 2.5 billion dollars if it continues through the first half of 2021.
After closing down over 1.5% yesterday, the Ford share is up over 2.5% in pre-market trading on Friday.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
As a result, the carmaker will stock its vehicles for several weeks and only ship them to dealers once the modules are available and quality checks are complete.
Production has been significantly slowed down in Louisville and production of the Fiesta has been suspended from 1 to 16 March in Cologne.
While Ford says that costs associated with these actions are covered in previously provided financial updates, with the company believing that the shortage could impact adjusted pre-tax earnings by 1 to 2.5 billion dollars if it continues through the first half of 2021.
After closing down over 1.5% yesterday, the Ford share is up over 2.5% in pre-market trading on Friday.
Copyright (c) 2021 CercleFinance.com. All rights reserved.