Ford Shuts Down German Plant Temporarily Due To Chip Shortage

Amid the growing shortage for semiconductors and weak demand for cars during the ongoing coronavirus crisis, automaker Ford has ordered to close down one plant in Germany for a month, while an Indian plant will remain idle for a week, reports said.

The factory in Saarlouis, Germany, which produces “Focus”, Ford’s most popular European car, will remain closed from Monday until February 19. The plant employs around 5,000 workers.

CNN reported a Ford spokesperson as saying, “We are closely monitoring the situation and adjusting production schedules to minimize the effect on our employees, suppliers, customers and dealers across Europe. At this time, we do not anticipate any similar actions at our other European facilities.”

Further, Ford India’s factory in Chennai, which was closed on January 14 for a three-day Pongal shutdown, is taking an extended shutdown to up to January 24.

The company was forced to close its sport-utility vehicle factory in Louisville, Kentucky, last week due to the computer chip shortage. Ford said it is working with its suppliers to address potential production issues due to the global semiconductor shortage.

Many automakers including Volkswagen, Daimler, Fiat Chrysler, Toyota, Nissan and Honda recently warned about production issues amid shortage of chips that are used in many applications including driver assistance systems and navigation control.

Meanwhile, Audi reportedly said it has furloughed 10,000 workers due to the semiconductor shortage, mainly at plants in Germany and Mexico.

Source: Read Full Article