Report - Ford Vehicle Production Threatened By Potential Microchip Shortage

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Ford Authority - Ford Vehicle Production Threatened By Potential Microchip Shortage

by Edward Snitkoff
December 14, 2020, 5:42 pm

Each vehicle produced by Ford Motor Company contains thousands of individual parts, with most of those components supplied by outside companies. Additionally, modern vehicles feature a plethora of electronic equipment that cannot operate without computer chips and semiconductors. This reality may soon stymie Ford vehicle production, as early warnings out of China suggest that COVID-19 impacted computer chip production more severely than previously thought. The news comes fresh off the heels of other pandemic related disruptions for Ford, most notably as it relates to the 2021 Ford Bronco.

According to the report, several major automakers recently indicated that the entire industry could be facing a global shortage of microchips. Volkswagen, together with German suppliers Bosch and Continental, forecast significant production bottlenecks in 2021. The warnings don’t specifically suggest a disruption in Ford vehicle production, but the company does produce vehicles in China for the local market which is where the shortage is currently making itself known.

There are several reasons why microchip supply may not meet demand. The pandemic initially crashed the Chinese auto market, and prominent chipmakers assumed production of goods wouldn’t fully return to normal levels for quite some time. But the market rebounded far more quickly than the companies anticipated, and because it takes time for the chipmakers to increase output, they haven’t been able to increase production enough meet the renewed demand.

The Blue Oval said it is working with suppliers to make sure Ford vehicle production isn’t affected by the disruption. However, the situation may eventually impact the company given the level of globalization in today’s auto industry.

As Ford Authority reported last week, Ford vehicle production in North America decreased 28 percent during the first 10 months of 2020, compared to the prior year. A two-month shutdown, which took place between the first and second quarters, severely impacted the company’s output. But Ford’s COVID-19-related woes didn’t stop there. It delayed the launch of the 2021 Ford Bronco because suppliers cannot currently build the vehicle’s removable tops.

https://fordauthority.com/2020/12/f...n-threatened-by-potential-microchip-shortage/





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Ford Authority - Ford Vehicle Production Threatened By Potential Microchip Shortage

by Edward Snitkoff
December 14, 2020, 5:42 pm

Each vehicle produced by Ford Motor Company contains thousands of individual parts, with most of those components supplied by outside companies. Additionally, modern vehicles feature a plethora of electronic equipment that cannot operate without computer chips and semiconductors. This reality may soon stymie Ford vehicle production, as early warnings out of China suggest that COVID-19 impacted computer chip production more severely than previously thought. The news comes fresh off the heels of other pandemic related disruptions for Ford, most notably as it relates to the 2021 Ford Bronco.

According to the report, several major automakers recently indicated that the entire industry could be facing a global shortage of microchips. Volkswagen, together with German suppliers Bosch and Continental, forecast significant production bottlenecks in 2021. The warnings don’t specifically suggest a disruption in Ford vehicle production, but the company does produce vehicles in China for the local market which is where the shortage is currently making itself known.

There are several reasons why microchip supply may not meet demand. The pandemic initially crashed the Chinese auto market, and prominent chipmakers assumed production of goods wouldn’t fully return to normal levels for quite some time. But the market rebounded far more quickly than the companies anticipated, and because it takes time for the chipmakers to increase output, they haven’t been able to increase production enough meet the renewed demand.

The Blue Oval said it is working with suppliers to make sure Ford vehicle production isn’t affected by the disruption. However, the situation may eventually impact the company given the level of globalization in today’s auto industry.

As Ford Authority reported last week, Ford vehicle production in North America decreased 28 percent during the first 10 months of 2020, compared to the prior year. A two-month shutdown, which took place between the first and second quarters, severely impacted the company’s output. But Ford’s COVID-19-related woes didn’t stop there. It delayed the launch of the 2021 Ford Bronco because suppliers cannot currently build the vehicle’s removable tops.

https://fordauthority.com/2020/12/f...n-threatened-by-potential-microchip-shortage/
IF this was true we would see it throughout all Car Company products....probably all products that use microchips. We have not and are not seeing this. Side note, we are told there are delays due to Covid, materials, etc. Focusing on materials....WHY is the Bronco Sport launch seem to be going off without a glitch? Other Manufacturer's products? They are being produced and showing up all across the US, even to small dealerships.
 

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Ford Authority - Ford Vehicle Production Threatened By Potential Microchip Shortage

by Edward Snitkoff
December 14, 2020, 5:42 pm

Each vehicle produced by Ford Motor Company contains thousands of individual parts, with most of those components supplied by outside companies. ...
Picture the Bronco as a big dart board. If you throw a few random Covid shutdown related darts at it I'm sure we can come up with a few more reasons _most_ people interested in buying one will not be able to receive one until 2022.

None of this should surprise anyone.
 

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This is why relying on foreign supply chains is a huge mistake (for any country). If we were a country that supplied all of our own needs (outside of things we do not have the capability to make/produce), we wouldn't be in this predicament. It is completely different when the country you reside in doesn't have the capability of providing a specific natural resource/product, but when we do have the ability to be self-sufficient, we should be. If 2020 should have taught us anything, it should have been that we need to centralize our production of vital resources and have a stockpile of them. Man I'm on a roll today with my rants.
 

618TRVLWILD

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News to me! Reading it for the first time! Not surprising being as teched up these vehicles are! Maybe they need to reach out to Aisin Electronics. They were located next door to the manufacturing factory when I worked for them. Although I know it's just not that easy! Feel bad for Ford getting slammed in all directions! I'm sure this is affecting everything. What have they had 5/6 models of new or re-desgns this year alone! I'll reach out the "ford sig" see he has any thoughts!
 
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This is why relying on foreign supply chains is a huge mistake (for any country). If we were a country that supplied all of our own needs (outside of things we do not have the capability to make/produce), we wouldn't be in this predicament. It is completely different when the country you reside in doesn't have the capability of providing a specific natural resource/product, but when we do have the ability to be self-sufficient, we should be. If 2020 should have taught us anything, it should have been that we need to centralize our production of vital resources and have a stockpile of them. Man I'm on a roll today with my rants.
You would also be paying 50k for your base bronco if everything that went into it was made in the USA
 

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This is why relying on foreign supply chains is a huge mistake (for any country). If we were a country that supplied all of our own needs (outside of things we do not have the capability to make/produce), we wouldn't be in this predicament. It is completely different when the country you reside in doesn't have the capability of providing a specific natural resource/product, but when we do have the ability to be self-sufficient, we should be. If 2020 should have taught us anything, it should have been that we need to centralize our production of vital resources and have a stockpile of them. Man I'm on a roll today with my rants.
You would also be paying 50k for your base bronco if everything that went into it was made in the USA
Yup not to get too political but if every little tiny Bronco part was made in the U.S. it would probably be over $50k. I honestly don’t know how they even keep the price as low as it is with all the overhead and R&D they had to do.
 
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Yup not to get too political but if every little tiny Bronco part was made in the U.S. it would probably be over $50k. I honestly don’t know how they even keep the price as low as it is with all the overhead and R&D they had to do.
They loose money on every sale, but make it up in volume, at least that's what the dealers say :ROFLMAO: :ROFLMAO: :ROFLMAO:
 

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IF this was true we would see it throughout all Car Company products....probably all products that use microchips. We have not and are not seeing this. Side note, we are told there are delays due to Covid, materials, etc. Focusing on materials....WHY is the Bronco Sport launch seem to be going off without a glitch? Other Manufacturer's products? They are being produced and showing up all across the US, even to small dealerships.
I've seen it in the cycling industry with bike computers and power meters. It been a major problem.

I can't speak too other industries because I don't purchase other electrics but I'm not surprised at all. If anything I'm surprised it didn't happen sooner.
 

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Yup not to get too political but if every little tiny Bronco part was made in the U.S. it would probably be over $50k. I honestly don’t know how they even keep the price as low as it is with all the overhead and R&D they had to do.
That sounds like artificial inflation personally but I'm no economics professional. It makes no sense that any item should cost more when made here at home than in a sweatshop 5000 miles away when you take into consideration getting it here and distributed. I was always taught consumers decide an item's value and demand while the manufacturer drives supply. If the consumers say they want a product (automobile), but the maximum amount the consumer will pay for any brand new automobile is $40k, guess what has to happen? Prices have to fall in order to get the consumer to buy it. So really all that has to happen to drive auto prices down is a majority of people to say that the max price of any new automobile shall not exceed $40k. I know, that's very idealistic but we can dream can't we lol?
 

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That “report” is too vague to be taken seriously.
“Microchip?” That could mean anything from a processor to a FLASH memory to a CANBUS controller to an LED driver. There are probably several hundred ICs in a modern vehicle. Most of them are multi-source, and a huge company like Ford would have entire departments working on making sure that all their sub-assemblies are available.
I’m not saying that something like the 12” LCD couldn’t be delayed, but I’d be surprised if something like the PCM was affected.
 

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News to me! Reading it for the first time! Not surprising being as teched up these vehicles are! Maybe they need to reach out to Aisin Electronics. They were located next door to the manufacturing factory when I worked for them. Although I know it's just not that easy! Feel bad for Ford getting slammed in all directions! I'm sure this is affecting everything. What have they had 5/6 models of new or re-desgns this year alone! I'll reach out the "ford sig" see he has any thoughts!
Does "Ford Sig" look like this (only blue)?

stig2.jpg
 

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