Steel Markets
Ford Cuts Production in July-August on Chip, Parts Shortages
Written by Michael Cowden
June 30, 2021
Ford plans to idle or reduce production at nearly all its North American assembly plants in July – and in some instances into early August – because of a shortage of chips and other parts.
“While we continue to manufacture new vehicles, we’re prioritizing completing our customers’ vehicles that were assembled without certain parts due to the industry-wide semiconductor shortage,” a company spokesperson told SMU on Wednesday, June 30.
The Dearborn, Mich.-based car, truck and SUV maker said earlier this year that it would build some vehicles without chip-containing electronic modules, hold them on site, and then ship them once enough chips were available.
And the company had already cut production at several North American plants into late June and early July.
Below is where things stand now:
- Chicago Assembly Plant will be down the weeks of July 5, 12, 19 and 26 and will run two shifts the week of Aug. 2
- Dearborn Truck Plant will run two crews the weeks of July 12, 19 and 26
- Flat Rock (Mich.) Assembly Plant will be down the weeks of July 12 and 19
- Hermosillo (Mexico) Assembly Plant will run one of two shifts the weeks of July 12 and 19
- Kansas City (Mo.) Assembly Plant F-150 line will be down the weeks of July 12 and 19, while the KCAP Transit line will be down the week of July 19
- Kentucky Truck Plant will be down the week of July 12 and run two shifts the weeks of July 19, 26 and Aug. 2
- Louisville Assembly Plant will run on a reduced schedule the week of July 19
- Michigan Assembly Plant will be down the weeks of July 5 and 26 due to an unrelated part shortage
- Oakville (Ontario) Assembly Complex will produce Nautilus only the weeks of July 19, 26 and Aug. 2
That tally includes all of Ford’s North American assembly plants besides its Ohio Assembly Plant and its Cautitlan Assembly Plant in Mexico.
The Ford spokesperson declined to specify what part shortage was impacting production at the Michigan Assembly Plant.
Steel prices have continued to rise despite the chip shortage, which has been hobbling automotive output since at least late last year.
Steel Market Update’s base price for galvanized product – which is widely used in automotive applications – stands at $1,970 per ton ($98.50 per cwt), up nearly 82% from $1,085 per ton at the beginning of the year and more than triple $655 per ton a year ago.
Lead times, meanwhile, are eight to 16 weeks – or well into the fourth quarter at some mills.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Markets
Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
CRU Insight: A 50% S232 tariff will raise US steel prices and shift trade flows
This CRU Insight examines how the increase in Section 232 tariffs on steel to challenging levels will lead to significatively higher prices for end consumers in the US market.
Steel market shakes tariffs off amid weak demand
Service centers and distributors contend that weak demand is to blame for the flattening of domestic steel spot prices, as reflected in Nucor Steel’s weekly Consumer Spot Price (CSP) notice. On Monday, the Charlotte, North Carolina-headquartered steel producer left prices unchanged from the previous week. Nucor has maintained prices of plate produced in Brandenburg since March 28.