{"id":158995,"date":"2021-01-29T12:25:01","date_gmt":"2021-01-29T17:25:01","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=158995"},"modified":"2021-01-29T12:27:14","modified_gmt":"2021-01-29T17:27:14","slug":"ford-cutting-more-jobs-as-biden-admin-steps-in-to-address-microchip-shortage","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2021\/01\/ford-cutting-more-jobs-as-biden-admin-steps-in-to-address-microchip-shortage\/","title":{"rendered":"Ford Cutting More Jobs as Biden Admin Steps in to Address Microchip Shortage"},"content":{"rendered":"
\"\"<\/a>
Ford is going to cut production at its Chicago assembly plant due to the chip shortage.<\/figcaption><\/figure>\n

Struggling to cope with increasing shortages of critical microchips, Ford Motor Co. plans to idle two of three shifts at an assembly plant in Chicago next week, while a local union leader warned employees the closure could be extended.<\/p>\n

The chip shortage is impacting a growing number of automakers and leading industry analysts to warn that the problem could slow the industry\u2019s recovery from the coronavirus pandemic. At this point, carmakers who have had to trim production due to the shortages include Stellantis, Toyota, Volkswagen, Honda, Mercedes-Benz, Audi, Subaru and Nissan.<\/p>\n

Officials from the new Biden administration have scheduled a meeting with their counterparts in Taiwan, according to the White House, and are expected to ask for help pressuring the world\u2019s largest automotive chip supplier, Taiwan Semiconductor Manufacturing Co., to ramp up operations.<\/p>\n

(Despite production cuts due to chip shortages vehicle inventory remains stable.)<\/strong><\/em><\/span><\/a><\/p>\n

\"\"<\/a>
The Chicago plant, which produces the Ford Explorer and Lincoln Aviator, could see additional down time a UAW official says.<\/figcaption><\/figure>\n

\u201cWe are grateful for the Biden administration\u2019s ongoing assistance and hope it can continue as more key positions are filled,\u201d Matt Blunt, president of the lobbying group, the American Automotive Policy Council, said in a statement. \u201cWe continue to engage with government officials as this remains a critical issue.\u201d<\/p>\n

Today\u2019s automobiles are essentially computers on wheels, using scores, even hundreds, of microprocessors and other chips to regulate their powertrains, control infotainment systems and operate the latest digital safety systems.<\/p>\n

But the demand for microchips has overwhelmed the supply in recent months. Experts point to a variety of factors but one key reason was the unexpectedly quick rebound of automotive manufacturing after pandemic-related shutdowns last spring. Complicating matters, many suppliers have redirected chips for use by personal electronics manufacturers who have seen a surge in demand as millions of Americans \u2013 and others abroad \u2013 have struggled to cope with COVID lockdowns by working and shopping at home.<\/p>\n

The impact has varied from one automaker to another. So far, General Motors has been able to avoid having to close plants or slow production lines. But its crosstown rival Ford has been especially hard hit.<\/p>\n

It now plans to idle the second and third shifts at its big Chicago Assembly Plant which assembles two key models: the Ford Explorer and Lincoln Aviator. The closure is scheduled to last for a week but, in a letter sent to workers, local union leader Coby Millender said that he has been advised there is \u201ca strong potential for additional weeks\u201d of closure if Ford can\u2019t come up with more chips quickly.<\/p>\n

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Ford’s Oakville, Ontario plant has experienced chip-related shutdowns too.<\/figcaption><\/figure>\n

The exact number of workers who will be impacted isn\u2019t yet clear, said Ford spokesperson Kelli Felker, though the facility currently employs 5,300 hourly workers and hundreds more on salary.<\/p>\n

Ford has, meanwhile, extended the chip-related shutdown of another light truck plant in Louisville, Kentucky, as well as one in Oakville, Ontario, said Felker, adding that hourly workers will continue to receive as much as 75% of their gross pay while off the job.<\/p>\n

(Nissan, Honda slash production due to chip\u00a0shortages as GM, Daimler, others warn of similar moves.)<\/a><\/u><\/i><\/strong><\/p>\n

Asked if other cuts might follow, Felker said, \u201cIt is a really fluid situation and I couldn\u2019t predict what\u2019s ahead for us.\u201d A separate company statement said Ford is \u201c(w)orking closely with suppliers\u201d to resolve shortages.<\/p>\n

Stellantis \u2013 formed earlier this month through the merger of Fiat Chrysler Automobiles and France\u2019s PSA Group \u2013 is looking for ways to reopen plants in both Mexico and Canada producing vehicles for the Chrysler, Dodge and Jeep brands.<\/p>\n

How long the crisis could persist is uncertain, though a ranking official within the Chinese auto industry warned it could take as long as a decade to resolve. \u201cChina\u2019s chip industry is under tremendous pressure,\u201d Yuan Chengyin, who oversees the country\u2019s push into electrification, said an interview with Bloomberg News. \u201cI don\u2019t think the issue can be solved overnight.\u201d<\/p>\n

\"\"<\/a>
The lack of a single semiconductor could bring an assembly plant to a grinding halt \u2014 and has.<\/figcaption><\/figure>\n

A number of industry analysts in the U.S. and abroad have begun looking at how much of an impact the shortage will have on automotive production. Any delays could complicate the industry\u2019s recovery from the pandemic at a time when manufacturers have been struggling to rebuild vehicle inventories hurt by COVID-related factory closures.<\/p>\n

Even before the shortages started to be felt, the official forecast by Cox Automotive called for 2021 U.S. sales to climb back only to around 15.7 million compared to the 17.1 million vehicles sold in 2019.<\/p>\n

A report by Bloomberg estimated that Detroit automakers alone could lose as much as $61 billion in revenue this year if the chip shortage continues.<\/p>\n

Responding to the mounting concerns, Biden trade officials will meet with their counterparts next week in Taiwan \u2013 a country that has become one of the primary suppliers of the microchips used in automobiles. In particular, the White House wants help pressuring Taiwan Semiconductor (TSMC) to increase production. Representatives from that firm and other Taiwanese chip suppliers also are expected to attend.<\/p>\n

Ahead of the meeting, TSMC said that, \u201cWhile our capacity is fully utilized with demand from every sector, TSMC is reallocating our wafer capacity to support the worldwide automotive industry.\u201d<\/p>\n

(Pandemic acts as catalyst for additional change in auto industry, analysts suggest.)<\/strong><\/em><\/a><\/span><\/p>\n

The crisis has hit the auto industry especially hard but other chip users are worrying about supply shortages, as well. Korea\u2019s Samsung Electronics this week said it is closely watching the implications\u201d of the shortages, warning that it \u201ccould affect mobile demand,\u201d as well.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ford is halting two shifts at its Explorer plant, impacting thousands of workers, due to worsening microchip shortages hitting auto plants worldwide. The Biden administration is meeting with officials in Taiwan next week in a bid to boost production, reports TheDetroitBureau.com.<\/p>\n","protected":false},"author":2,"featured_media":159000,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,12,9],"tags":[],"make":[35,51,56,58,63,85,90,106,107,111,113],"post-state":[],"category_old":[118,286,215,150,151,123,287,133,131,173,319,299,191,248,243,238,316,132,196,129,283,284,189,125,124,137,139,148,212,211,128,291,206,278,288,232],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/158995"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=158995"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/158995\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/159000"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=158995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=158995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=158995"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=158995"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=158995"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=158995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}