GM and Ford Cutting Production at Several North American Plants Due to Chip Shortage

[shogun32]

Prices gonna go up, people have money in pockets and willing to spend

I don't think so. I got a call this morning on a 600 mile WB Challenger and in 10 days time they had gone from charging 3000 OVER MSRP for a used car to MSRP and I could sense they were headed lower just to get any sale at all. I think it's more probable that units sold is going to crater bigly until the discounts are put back. Sure there will be numpties paying crazy money in some misguided "must have" pursuit. But I think the vast majority of people will just quit looking until the MSM blow the all-clear on the "chip shortage".

Vroom's financials are atrocious.
https://seekingalpha.com/symbol/VRM/income-statement

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[Stang 19]

Here is the shutdown schedule for Ford:
The impacted plants are as follows:

• Chicago Assembly Plant in illinois will be down the week of May 31 and will operate on a reduced schedule the week of June 7.
• Flat Rock Assembly Plant in Michigan will be down the weeks of May 31 and June 7.
• Dearborn Truck Plant in Michigan and Kansas City Assembly Plant in Missouri– truck line – will be down the weeks of May 31 and June 7 and will operate on a reduced schedule the week of June 14.
• Hermosillo Assembly Plant in Mexico will be down the weeks of June 21 and June 28
• Louisville Assembly Plant in Kentucky will be down starting the week of May 31 through mid-July, which includes an already-scheduled summer shutdown period.
• Oakville Assembly Complex in Canada will be down the weeks of May 31 through June 28.
• Ohio Assembly Plant will produce only Super Duty Chassis cabs and Medium Duty trucks the weeks of May 31, June 7 and June 14.

The cuts come weeks after Ford CEO Jim Farley warned investors that the company expected to lose about 50% of its planned second-quarter production, up from 17% in the first quarter.

 

[shogun32]

the company expected to lose about 50% of its planned second-quarter production

I *really* want to know what Ford Purchasing did a year ago in their 'chip' ordering forecasts.

This making it up week by week IMO is just trying to play rearguard action. I would guess the factory outages will get doubled. easily.

Anyone with inventory will get sales. There isn't a lick of useful difference between F150 and the trucks from GM and Dodge. People have long-since jettisoned the quaint notion of brand allegiance.

 

[Stang 19]

I *really* want to know what Ford Purchasing did a year ago in their 'chip' ordering forecasts.

This making it up week by week IMO is just trying to play rearguard action. I would guess the factory outages will get doubled. easily.

Anyone with inventory will get sales. There isn't a lick of useful difference between F150 and the trucks from GM and Dodge. People have long-since jettisoned the quaint notion of brand allegiance.

Indeed. What we are seeing are the higher-priced vehicles selling for premiums and Ford is all too happy to continue trying to deliver the high priced high profit vehicles so that even though they will sell many less vehicles the profit margin will still remain good . The sucky thing for us enthusiasts here are those folks that have orders in and are waiting ... The Ford tracker is notoriously in accurate and now will become even less accurate I had an order in for a GT 500 and decided to take one off the lot instead which was the better move for me . My last car was a 19 GT with performance package level two that I ordered well before the pandemic and it still took six months from order time to delivery which is crazy . I still maintain that if anyone has an order existing or wants to place an order , instead to look at the alternative idea of searching vehicles in dealer inventories even if you have to drive considerably to get your car -at least you’ll have one now rather than waiting six months or a year .

 

[JN66]

Here is the shutdown schedule for Ford:
The impacted plants are as follows:

• Chicago Assembly Plant in illinois will be down the week of May 31 and will operate on a reduced schedule the week of June 7.
• Flat Rock Assembly Plant in Michigan will be down the weeks of May 31 and June 7.
• Dearborn Truck Plant in Michigan and Kansas City Assembly Plant in Missouri– truck line – will be down the weeks of May 31 and June 7 and will operate on a reduced schedule the week of June 14.
• Hermosillo Assembly Plant in Mexico will be down the weeks of June 21 and June 28
• Louisville Assembly Plant in Kentucky will be down starting the week of May 31 through mid-July, which includes an already-scheduled summer shutdown period.
• Oakville Assembly Complex in Canada will be down the weeks of May 31 through June 28.
• Ohio Assembly Plant will produce only Super Duty Chassis cabs and Medium Duty trucks the weeks of May 31, June 7 and June 14.

The cuts come weeks after Ford CEO Jim Farley warned investors that the company expected to lose about 50% of its planned second-quarter production, up from 17% in the first quarter.

Thank you for this.

Is there a way for us to tell which plant our GT500 is supposed to be assembled at?

 

[GRStang]

Thank you for this.

Is there a way for us to tell which plant our GT500 is supposed to be assembled at?

All GT500s and all Mustangs are out of the Flat Rock plant.

 

[Stang 19]

All GT500s and all Mustangs are out of the Flat Rock plant.

So reading between the lines it sounds like mustang production is off-line until June 7 as that date approaches I am sure we will hear if they’re going to extend it or if they’re going to resume production it really all depends on the availability of the electronics(semiconductors).

 

[JN66]

All GT500s and all Mustangs are out of the Flat Rock plant.

Much obliged.

 

[Snoopy49]

So reading between the lines it sounds like mustang production is off-line until June 7 as that date approaches I am sure we will hear if they’re going to extend it or if they’re going to resume production it really all depends on the availability of the electronics(semiconductors).

June 14 is the earliest date for production, pending any new information.

 

[Kane00]

Sounds like they are doing it around Memorial Day and 4Th of July weeks since lots of people take those weeks for summer vacation anyway. I know companies have done this before

 

[Snoopy49]

Stockpile of Unfinished Ford Super Duty Pickups Missing Chips Is Now Visible from Space

 

[Dingo]

Just read the sad news, the Flat Rock Plant closed for another 2 weeks.
Problably won't see my new Mustang GT in Australia much before the end of the year.
Ordered 4 Jan 2021, will problably get the MY21 in 2022.
Any updates from you guys Stateside would be appreciated.

 

[Snoopy49]

Ford just announced that Flat Rock will be down for the weeks of July 12th and July 19th.

 

[Strokerswild]

Stockpile of Unfinished Ford Super Duty Pickups Missing Chips Is Now Visible from Space

Talk about a logistics nightmare.

 

[FreePenguin]

Talk about a logistics nightmare.

can you imagine if a hailstorm or tornado just came through there? jeez

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