Ford announces production cuts for its F-150 pickup trucks again

The ongoing global semiconductor chip shortage continues to rattle production among businesses all over the world. The latest company to cut production is Ford Motors which informed its employees of its decision on Wednesday.

This is the second time in 2021 that the company has announced production cuts of its F-150 pickup truck and other highly profitable vehicles. In May, the company announced production cuts at eight North American Ford Motors plants due to the semiconductor chip shortage in the automobile industry.

CNBC reported that the new production cuts would also come along with increased downtime at Ford’s Kansas City Assembly plant for the F-150 through the week of September 6. The production of pickup trucks in the plant has been down since last week due to a shortage of parts.

For the next week, Ford’s other U.S. plant that produces the F-150 will only run on one of three shifts next week. The Michigan plant has done the same this week.

CNBC's report also mentioned that Ford’s Kentucky Truck Plant, which builds Super Duty pickups alongside Expedition and Navigator SUVs, would cut a shift in the coming two weeks.

Previously CNBC had reported that Ford expected problems from the chip shortage to reduce its earnings by about $2.5 billion in 2021, the high end of its previous guidance for the year.

Picture Credits - CNET

With inputs from CNBC