Ford extends production cuts in Europe on chip shortages

Ford extends production cuts in Europe on chip shortages

Microchip shortages at Valencia affected manufacturing of the Kuga crossover, Mondeo midsize mannequin and Galaxy minivan, he mentioned.

Ford’s manufacturing facility in Cologne, Germany, house of the Fiesta small hatchback, was additionally impacted however to a “comparatively minor” extent, Rowley mentioned.

Ford has prolonged short-time work within the Cologne and Valencia vegetation, in addition to in Craiova, Romania, the place the corporate builds the Puma small crossover, in response to Automobilwoche, a sister publication of Automotive Information Europe.

Cologne will add three extra days of short-time work in March, Craiova will add eight extra days of short-time work whereas Valencia will add 14 further days, Automobilwoche mentioned, quoting an organization spokesman.

The scarcity coincides with diminished demand for brand spanking new automobiles resulting from lockdowns to curb the unfold of COVID-19 in its two largest European markets of Germany and UK.

Rowley expects microchip provides to normalized in late spring.

“I feel as soon as we get to the second quarter, this challenge can be behind us,” he mentioned.

Automakers throughout Europe have been hit by the scarcity, which was attributable to a mixture of things together with a surge in demand for shopper electronics akin to gaming gadgets.

Renault CEO Luca de Meo mentioned he hoped to limit unit production losses to under 100,000 on an earnings name final week.

Renault has already briefly halted manufacturing in factories in Morocco, Romania and France.
Analysts say the worldwide manufacturing shortfall within the first half may attain 1 million items or extra.

They count on that chip provides to be restored within the second half and that the majority misplaced manufacturing can be recovered.

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