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Ford Cuts Production of Popular F-150s Due to Global Semiconductor Shortage

The global semiconductor shortage has created significant problems for major automakers around the world, forcing them to cut back on production during a time when demand for passenger cars and trucks has been at an all-time high.

Following in the footsteps of General Motors, whom recently announced that it will be reducing production volumes at four of its assembly plants including its factory in Ontario, Ford too has revealed that it has no choice but to cut output of its popular F-150 pickup truck due to the global chip shortage.

On Thursday, Ford reported that it will be running only one shift instead of three at its Dearborn Truck Plant in Michigan, and two shifts instead of three at its Kansas City Assembly Plant in Missouri. The shift reductions are expected to continue until the week of February 15.

“We are working closely with suppliers to address potential production constraints tied to the global semiconductor shortage and working to prioritize key vehicle lines for production, making the most of our semiconductor allocation,” said Ford spokesperson Kelli Felker. However, despite the cuts, Ford’s stock price appears to remain unaffected, and increased by approximately 3% Thursday morning.

Semiconductors have numerous uses in nearly all new vehicles, including infotainment systems and even power steering. They are also used in a variety of electronics, many of which have surged in popularity amid the pandemic — including gaming consoles, televisions, and smartphones.


Information for this briefing was found via Ford. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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