Reports: Ford claims a chip shortage will force them to stop or reduce production at 8 plants.

The major U.S. automaker's announcement continued a string of supply-chain problems that have negatively impacted the country's economy in recent months.

Reports: Ford claims a chip shortage will force them to stop or reduce production at 8 plants.

According to reports, Ford Motor will temporarily stop or scale back Auto production in eight North American plants because of difficulties in obtaining semiconductor chips, according to Friday's announcement.

The major U.S. automaker's announcement - which will take effect next week - continued a string of supply chain setbacks in recent months that have impacted the country's economy.

Ford warned that a shortage of chips would likely affect production in the company’s current quarter, Reuters reported.

According to Reuters, Ford's decision will likely cause work to be suspended at plants in Michigan, Chicago, and Cuautitlan (Mexico).

Plants in Kentucky and Oakville (Ontario), Canada will also be affected, Reuters said.

According to the news outlet, Ford's F-150 pickup trucks will cease production in Kansas City. Instead, one shift will produce Transit vans.

Other Ford models affected by the move are the Bronco, Explorer SUVs and Ranger pickups. The Ford Mustang Mach-E electric crossover car and the Lincoln Aviator were also affected, CNBC reported.

According to CNBC, Ford's earnings expectations were not met on Thursday, which caused shares to plummet nearly 10% on Friday.

John Lawler, Ford's Chief Financial Officer, appeared earlier Friday on Fox News' Mornings with Maria. He stated that the company expects the semiconductor shortage will ease later in 2022.

Lawler stated, "That's why our volumes in 2022 will be up approximately 10 to 15%."

He said that a rebound in production could bring down inflation-affected auto prices.

He stated that the automaker was hit hard by the chip shortage and the coronavirus's impact on the micron variant.

Lawler stated that "we just weren't in a position to achieve the higher volumes that some were expecting," FOX Business' Maria Bartiromo.


 

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