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
CRU: Brazil proposes quotas on steel imports, with tariff back up
Brazil’s chamber of foreign trade, Camex, has approved quotas on imports of 11 steel products and a 25% levy on shipments 30% above a product’s average import volume between 2020 and 2022.
Leading nonres indicator falls to more than three-year low
An important economic indicator for the nonresidential construction industry declined in March to its lowest point in more than three years.
Active rig counts slip in US and Canada
The number of active rigs in the US is now at the lowest level seen in over two years, while Canadian rigs have fallen to a four-month low.
GrafTech continues to bleed red on weak demand
GrafTech is reporting weak near-term demand for graphite electrodes as economic uncertainty constrains steel production globally.
Worldsteel projects steel demand to grow 1.7% this year
Global steel demand will reach roughly 1.793 million metric tons (1.976 million short tons) this year, an increase of 1.7% over 2023, the World Steel Association (worldsteel) said in its updated Short Range Outlook report. The gain will come after a 0.5% contraction in steel demand in 2023. Demand is forecasted to increase another 1.2% […]