On March 25th, a Reuters article revealed that Ford has had to idle the production of the highly popular F-150 pickup truck. Ford's plant, located in Dearborn, Michigan, will slow the assembly process from Friday through Sunday.
The chip shortage is a result of North American auto plants having to close for a couple of months during the Covid-19 pandemic last year, which cancelled orders for the needed semiconductor chip. Since the average person began to spend more time at home, a rise in the consumer electronics industry increased the need for the particular chips. Now, auto companies are left competing to fulfill their inventories.
The semiconductor chip has a wide range of functions including tracking engine performance and managing automatic windows and entertainment systems.
The F-150 continues to be one of the world's best-selling trucks, but Ford claims the chip shortage could slash their 2021 profits by anywhere from $1 billion to $2.5 billion.