Global Chip Shortage Causes Ford to Close German Plant

Ford announced that it would temporarily close its factory in Saarlouis, Germany, from Monday until February 19 because due chip shortage and weak demand.

Ford announced that it would temporarily close its factory in Saarlouis, Germany, from Monday until February 19 because due chip shortage and weak demand.

“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,” said Ford.

The shortage reportedly came from the competition between auto manufacturers and the electronics industry for chip supplies. 

Due to the high demand for electronics during the pandemic, chip supplies were scarce throughout 2020.

The demand for cars in the final three months of 2020 beat forecasts and caught both industries off guard, causing miscalculations in logistics and procurement. 

Ford also halted production at its Louisville, Kentucky assembly plant which was due to a similar shortage.

Aside from Ford, Audi along with Toyota, Honda, and VW have also halted or reduced production in some of their plants due to the chip shortage.  


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