Ford Motor Company announced on Thursday that it would halt production in its Michigan plant due to the persisting semiconductor shortage.
The second-leading U.S. automaker said it would suspend the operations of its Flat Rock Assembly Plant next week.
The facility started building the Mustang in January of 2022, but it grappled with production halts multiple times this year.
Last month, the firm also stopped outputs at its Kansas City plant that makes F-150 pickup vehicles. Similarly, its Ohio and Kentucky factories have ceased production this year.
Correspondingly, the business warned that the chip shortage would cause a decline in vehicle volumes in the current quarter.
It explained that the shortfall continues to affect its North American plants. Nevertheless, the firm ensured that it had teams working on how to maximize production.
In addition, the company said it would stay committed to every high-demand vehicle with the quality that customers expect.
Overall, Ford anticipated 10.00% to 15.00% full-year wholesale gains this year.
Accordingly, all of the North American plants of the business will run the week of April 4, except Flat Rock Assembly Plant.
The semiconductor shortage has dragged on for more than a year, hampering auto production across the globe.
This year, the industry had lost more than 1.20 million units of planned vehicle outputs.
Moreover, the ongoing Russia-Ukraine war triggered fresh worries in the sector. Analysts expected that the combination of headwinds could retain the inventory issues this year.
Consequently, the low stocks would fuel increases in new vehicle prices.
Shares of Ford skidded 2.08% or 0.36 points to $16.91 per share after its latest announcement. Since the start of the year, it has lost 22.32% or 4.86 points.
Ford, GM face production hits
Like Ford, General Motors would cancel production at the Lansing Grand River Assembly in Michigan.
Starting next week, it will discontinue the manufacturing of the Cadillac CT4, Cadillac CT5, and Chevrolet Camaro at the plant.
Meanwhile, GM emphasized that the halt was not related to chips but provided no other specifics.
Recently, it also paused the production of an assembly plant in Fort Wayne, Indiana, for two weeks. The factory builds the Chevrolet Silverado 1500 and GMC Sierra 1500 pickup trucks.
Then, GM’s Silao Assembly in Mexico, where it produces Sierra and Silverado light-duty trucks, is safe from constraints.
Eventually, the U.S. largest automobile manufacturer closed 3.27% or 1.48 points lower to $43.74 per share.