A global semiconductor shortage and a February winter storm have combined to force Ford to build F-150 pickup trucks without some computers.

The company says the pickups will be held at factories for “a number of weeks,” then shipped to dealers once computers are available and quality checks are done.

The move is the latest ripple from the global semiconductor shortage, which earlier this week forced Honda and Toyota to announce production cuts at some North American factories. General Motors also has been forced to build pickups without some computers and install them later.

Ford’s move is likely to tighten the inventory of F-Series pickups, the top-selling vehicles in America. Inventories already are tight due to high demand and production losses due to last year’s coronavirus-related factory shutdowns.

Ford also said it will build the Edge SUV without computers and ship them later, and it will cancel some shifts Thursday and Friday at an assembly plant in Louisville, Kentucky, where the Ford Escape SUV is made.

In addition, Volkswagen and Fiat Chrysler (now Stellantis) also say they have been affected by the shortage and forced to delay production of some models in order to keep other factories running.

Industry officials say semiconductor companies diverted production to consumer electronics during the worst of the COVID-19 slowdown in auto sales last spring. Global automakers were forced to close plants to prevent the spread of the virus. When automakers recovered, there weren’t enough chips as demand for personal electronics boomed.

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The White House said Thursday that administration officials are working to address the growing shortage of semiconductor chips that has slowed down auto production around the world.

White House press secretary Jen Psaki said the Biden administration is "currently identifying potential chokepoints in the supply chain and actively working alongside key stakeholders in industry and with our trading partners to do more now."

 

This is one reason Biden plans to sign an executive order in the coming weeks to conduct a comprehensive review of supply chain issues for critical goods.

On Wednesday, General Motors Co. said the global semiconductor chip shortage could shave up to $2 billion from profit in 2021. On Tuesday, the largest U.S. automaker extended production cuts to three North American plants and said that it would partially build and later finish assembling vehicles in two other factories due to chip shortages.

Ford Motor Co. has previously said that it has lost production of its top-selling F-150 pickup truck. In the United States and around the world, and several other automakers have cut production.

The official added it is critical "to identify more durable solutions to addressing the longstanding issues faced by the semiconductor industry and the end users of these goods."

In a Jan 19 letter to Biden adviser Brian Deese, the United Auto Workers union and the heads of associations representing automakers, auto dealers and parts manufacturers asked the Biden administration to consider "urging major silicon wafer foundries to ramp up production of automotive grade wafers."

 

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