Billion Dollar Oops – Ford F-150s, Edges Without Electronics

Ken Zino on semiconductor supply collapse

All-new F-150 Limited. Too bad about the missing control modules.

The global semiconductor supply collapse has its teeth into Ford Motor, which is now building F-150 trucks and Edge SUVs in North America without some parts. These include electronic modules that contain scarce semiconductors.

Ford will build and hold them for a number of weeks, then ship them to dealers once the modules are available and quality checks are complete.

Ford canceled the night shift last Friday and both shifts Friday at Louisville Assembly Plant due to a semiconductor-related part shortage. Ford Escape and Lincoln Corsair production is expected to resume Monday on short shifts, with full production scheduled to resume Tuesday.

Ford is also taking further down days at our Cologne plant, suspending Fiesta production March 1-16 as well as March 22 The costs tied to these actions are covered in the financial updates Ford previously provided.

Ford said that if the semiconductor shortage scenario is extended through the first half of 2021, the shortage could adversely impact Ford’s adjusted EBIT by between $1.0 billion and $2.5 billion, net of cost recoveries and some production make-up in the second half of the year.

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1 Response to Billion Dollar Oops – Ford F-150s, Edges Without Electronics

  1. Gina M. Raimondo says:

    Following a meeting with the CEOs and senior executives on the Semiconductor Industry Association (SIA) board of directors, U.S. Secretary of Commerce Gina M. Raimondo released the following statement:

    “I had a productive meeting with members of the Semiconductor Industry Association board of directors on the importance of American semiconductor innovation and manufacturing. Semiconductors are America’s fourth largest export, and critical to our economic competitiveness and national security. I believe we need to make strong investments in domestic manufacturing, research, and workforce, and help strengthen America’s global leadership in semiconductor manufacturing and innovation. This is the beginning of what I believe will be an ongoing dialogue between the Department of Commerce and industry leaders as we find innovative ways to invest in domestic manufacturing.

    “The Biden-Harris Administration views semiconductors as a critical supply chain that we must strengthen domestically. As the President said, the U.S. is the birthplace of this technology, but over the years we have under-invested in production and hurt our innovative edge, while other countries have learned from our example and increased their investments in the industry. As Secretary of Commerce, combatting the semiconductor shortage and investing in American manufacturing of semiconductor technology is going to be a priority of mine and I look forward to working alongside leaders like the Semiconductor Industry Association.”

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