Report - Ford Vehicle Production Threatened By Potential Microchip Shortage

BigDog

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Does that mean the supply constraint is a day behind or weeks and months? Are there unchipped F150’s parked in Walmart’s across Kentucky?
We are still working overtime here but they will shut all the Ford plants down and send us their chips to keep us running. We are getting the chips gradually. The other Ford plant here in Louisville is going on their 3rd week being laid off.
 
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North7

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My post absolutely had no politics in it..gets deleted because it said it had politics in it.
Not cool mod
Seems to be an ever increasing amount of “Censorship” going on! Guess we know who is running the show here!
Wish I could like this more!!
Throwing out the term of the day like “Censorship” is not helpful to the community, @Administrator Doug does a great job of keeping everyone within the terms of service. Bronco6g has always had a policy of trying to avoid incendiary subjects, one person's opinion on hot a button subject quickly gets framed into I'm right, your wrong or here is the real cause of that problem, these kinds of strong opinions are just one definition of political.

Many times these kinds of posts get deleted when another member finds them offensive and clicks on the "Report" icon in the lower left of every post. Nothing good comes from incendiary subjects on an automotive forum when we are here to discuss all things Bronco.
 
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North7

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Yes this is very real. I work at one of the two Ford plants in Louisville, KY and Ford shut down the other Louisville plant and also Chicago. Kansas City cut back all overtime and they send all their chips to us to use since we are the #1 plant in the Ford system. Only going to get worse because it’s a bidding war for these semiconductors. They go in all the gaming systems and now these factories are selling to the higher bids.
I'm really surprised your using chips from gaming systems, which in the lifecycle of consumer products are throw away. In aircraft, non-flight-critical systems, we sometimes will use automotive grade chips, if they meet all of our requirements, such as extended operational temperature range.

The reason is we share a similar need in that we want a 10 year long life support guarantees from the manufacturers, many automotive grade chips support this, most consumer chips do not. When chips go end-of-life having to redesign the circuits and software around new chips gets very expensive.
 

Limecreek

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Chip sets, ICs, ECs, GPUs, CPUs and so on, are all short to demand across a number of industries. The comment of selling to the highest bidder is only accurate in the broker market. Most large manufacturing companies make strategic supply purchases several quarters in advance and suppliers are under contract to meet that demand. However, demand has dramatically exceeded supply. And there is only so much supplier capacity.

Procurement will look to the broker market for critical needs, but they will pay a premium.

1H of the year will be constrained, but the outlook for 2H will improve.
 

1975U15

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Throwing out the term of the day like “Censorship” is not helpful to the community, @Administrator Doug does a great job of keeping everyone within the terms of service. Bronco6g has always had a policy of trying to avoid incendiary subjects, one person's opinion on hot a button subject quickly gets framed into I'm right, your wrong or here is the real cause of that problem, these kinds of strong opinions are just one definition of political.

Many times these kinds of posts get deleted when another member finds them offensive and clicks on the "Report" icon in the lower left of every post. Nothing good comes from incendiary subjects on an automotive forum when we are here to discuss all things Bronco.
I get it. Appreciate all the hard work the administrators do and grateful for the resource.
 

Thed

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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.
Show me chip makers in the USA. China has all of the chip-making business because all of the necessary factories (and raw materials) are there in China or at least very close in proximity. The fact that it's cheap labor is just a bonus.

To bring chip manufacturing to the USA would be a HELL of a lot more complicated than *insert factory here* and to start cranking them out. I know Intel makes some silicon wafers here in the US, but there is just so much more to microprocessors, SoC's and integrated solutions than just silicon wafers.

Believe me, I'd love chip manufacturing to be done here as well. But without huge (and I mean HUGE) investments by multiple companies and the government it just won't happen.
 

Razorback

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We don’t make the F150. We make the Super Duty’s F250, F350, F450, F550, Expedition and Lincoln Navigato. We got chips in last night and put them in the vehicles sitting on the lot.
Can't eat just one...
tenor.gif
 
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North7

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Show me chip makers in the USA. China has all of the chip-making business because all of the necessary factories (and raw materials) are there in China or at least very close in proximity. The fact that it's cheap labor is just a bonus.

To bring chip manufacturing to the USA would be a HELL of a lot more complicated than *insert factory here* and to start cranking them out. I know Intel makes some silicon wafers here in the US, but there is just so much more to microprocessors, SoC's and integrated solutions than just silicon wafers.

Believe me, I'd love chip manufacturing to be done here as well. But without huge (and I mean HUGE) investments by multiple companies and the government it just won't happen.
Not all are in China, here is a list of US ones, Qualcomm, San Diego, is missing from this list however.
Top Semiconductor Companies in U.S.A.

Then you have the gorillas, TSMC in Taiwan and Samsung in South Korea.

Fortunately, Texas leads the way in bringing even more capacity to the US.

Samsung will reportedly make 3nm processors at expanded Texas plant

Tesla partners with Samsung on new 5nm chip for full self-driving, report says
 
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Razorbak86

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We don’t make the F150. We make the Super Duty’s F250, F350, F450, F550, Expedition and Lincoln Navigato.
[Compares UserName and comment...]

Seems legit. ?
 

Razorbak86

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Update on the recent effect at GM...

GM to idle 3 plants in North America due to semiconductor shortage

Jamie L. LaReau, Detroit Free Press
Published 2:25 p.m. E.T. Feb. 3, 2021; Updated 5:00 p.m. E.T. Feb. 3, 2021

https://www.freep.com/story/money/c...th-america-semiconductor-shortage/4373284001/

General Motors is idling three of its assembly plants in North America and running a fourth in South Korea at half capacity for one week as it struggles with the ongoing semiconductor shortage that has already impacted production at Ford Motor Co., Stellantis and others globally.

On Monday, GM will idle the following plants — which run two shifts — for a week:
  • Fairfax Assembly and Stamping Plant in Kansas City, Kansas: About 2,000 hourly workers build the Chevrolet Malibu sedan and Cadillac XT4 SUV.
  • CAMI, Ingersoll, Ontario Canada: About 1,500 hourly workers build the Chevrolet Equinox SUV.
  • San Luis Potosí, Mexico: GM builds Chevrolet Equinox and Trax and GMC Terrain SUVs.
In addition, GM will run its Bupyeong 2 assembly plant in South Korea at half capacity beginning the week of Feb. 8. GM builds the Chevy Malibu, Trax and Buick Encore SUV there for sale in the United States.

GM_1.jpg


On Jan. 22, Business Korea reported that GM planned to cut vehicle production by suspending overtime and extra work at its Bupyeong plant because of the semiconductor shortage. It uses the chips in its electronic control units and infotainment systems.

"No production disruptions," GM spokesman David Barnas told the Free Press last week. "There were rumors last week from suppliers that our Korea operations were being disrupted. But GM Korea corrected those stories."

Barnas said GM will not idle Bupyeong, but will merely run it at half capacity for a week, starting Monday.

Workers get paid

The UAW reacted to GM's news by saying its leaders continue to work with major employers, the Biden administration, Congress and suppliers to address the semiconductor shortage.

"Over the past 30 years, production of semiconductors has been offshored to South Korea, Taiwan and more recently, China," said UAW spokesman Brian Rothenberg in a statement. "Today, the United States only controls manufacturing for about 14% of all semiconductors."

GM_2.jpg


The union negotiated worker protection in the event of parts shortages interrupting production in its contract, he said. Union workers will receive supplemental pay and unemployment that pays 75% to 80% of salary and continued benefits.

"However, the UAW is working with employers to minimize the impact on auto manufacturing production as much as possible," Rothenberg said.

GM said union workers at CAMI, represented by Unifor, will be paid through the provisions of their labor agreements, noting that represented seniority employees will receive about 75% of their compensation through a combination of unemployment and supplemental benefits. Workers at GM's plants in Mexico and Korea are not union-threpresented.

Protect pickups and SUVs

Demand for semiconductor use is up in part because of the coronavirus pandemic and an increase of laptop computers, which use the semiconductor chips. Cars also use them in a variety of parts and infotainment systems.

The union said if the parts were made in America, the industry would have, "more ability to respond to these demand issues," Rothenberg said. He added that the UAW is calling on the government to develop trade and policy solutions to bring advanced technology production back to the United States.

GM's Barnas said semiconductor supply for the global auto industry remains very fluid and its supply chain organization is "working closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM."

GM is assessing the overall impact to production and Barnas declined to provide an estimated production impact from the planned plant closures next week.

"Our focus is to keep producing our most in-demand products — including full-size trucks and SUVs and Corvettes — for our customers," Barnas said.

GM_3.jpg


GM builds its heavy-duty, full-size pickups at Flint Assembly Plant and its light-duty, full-size pickups at the Fort Wayne Assembly Plant in Indiana. It builds its midsize pickups at Wentzville Assembly in Missouri and its full-size SUVs at Arlington Assembly in Texas.

All four plants will continue to run on three shifts and weekend overtime, Barnas said. GM builds the Corvette at Bowling Green Assembly in Kentucky.

GM's assembly plants in Lansing and other parts of Michigan will continue to operate regularly.

"Due to the fluidity around the availability of parts, our current plan is to update the plants each week," Barnas said. "Our intent is to make up as much production lost at these plants as possible. Importantly, this issue will not impact our commitment to an all-electric future."

Ford impact

GM will provide further details on the semiconductor issue when it reports its 2020 earnings on Feb. 10.

Ford has been hit hard by a global parts shortage with factory workers in several states receiving temporary layoffs or shift reductions. Ford has reduced shifts at its Michigan Dearborn Truck Plant, which employs 4,600 hourly workers and builds the 2021 F-150 pickup.

Likewise, it has shortened evening and day shifts at Kansas City Assembly, which employs 7,300 hourly workers and builds the F-150. At the Chicago Assembly Plant, which employs 5,300 hourly workers and builds the 2021 Ford Explorer, Lincoln Aviator and Police Interceptor, Ford is expected to announce a potential production disruption.

Ford's Louisville Assembly Plant is down through Feb. 7 because of the shortage. That affects about 3,900 hourly workers building the Ford Escape and Lincoln Corsair.

Stellantis planned to shutter plants in Mexico and Canada, building the Jeep Compass and Chrysler 300, Dodge Charger and Dodge Challenger, through the end of January. A Stellantis spokeswoman said Wednesday that its North American facilities are running in February and the automaker continues to work closely with its global supply chain network to monitor the industry-wide issue.

Automakers globally that have been impacted by the chip shortage and have cut production include Toyota, Volkswagen, Honda, Mercedes-Benz, Audi, Subaru and Nissan.

GM's Global Purchasing and Supply chain organization has managed to fend off plant disruptions until now in part due to getting a jump start on the problem, a source familiar with the matter said, but declined to be named because he is not authorized to share information with the media.

The group also has a lot of experience from setting up ventilator manufacturing in a matter of days last spring and managing GM through the 2010 tsunami in Japan.

Staff writers Phoebe Wall Howard and Eric D. Lawrence contributed to this report.
 
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ironmike

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Update on the recent effect at GM...

GM to idle 3 plants in North America due to semiconductor shortage

Jamie L. LaReau, Detroit Free Press
Published 2:25 pm ET on 2/3/2021; Updated 5:00 pm ET on 2/3/2021

https://www.freep.com/story/money/c...th-america-semiconductor-shortage/4373284001/

General Motors is idling three of its assembly plants in North America and running a fourth in South Korea at half capacity for one week as it struggles with the ongoing semiconductor shortage that has already impacted production at Ford Motor Co., Stellantis and others globally.

On Monday, GM will idle the following plants — which run two shifts — for a week:
  • Fairfax Assembly and Stamping Plant in Kansas City, Kansas: About 2,000 hourly workers build the Chevrolet Malibu sedan and Cadillac XT4 SUV.
  • CAMI, Ingersoll, Ontario Canada: About 1,500 hourly workers build the Chevrolet Equinox SUV.
  • San Luis Potosí, Mexico: GM builds Chevrolet Equinox and Trax and GMC Terrain SUVs.
In addition, GM will run its Bupyeong 2 assembly plant in South Korea at half capacity beginning the week of Feb. 8. GM builds the Chevy Malibu, Trax and Buick Encore SUV there for sale in the United States.

On Jan. 22, Business Korea reported that GM planned to cut vehicle production by suspending overtime and extra work at its Bupyeong plant because of the semiconductor shortage. It uses the chips in its electronic control units and infotainment systems.

"No production disruptions," GM spokesman David Barnas told the Free Press last week. "There were rumors last week from suppliers that our Korea operations were being disrupted. But GM Korea corrected those stories."

Barnas said GM will not idle Bupyeong, but will merely run it at half capacity for a week, starting Monday.

Workers get paid
The UAW reacted to GM's news by saying its leaders continue to work with major employers, the Biden administration, Congress and suppliers to address the semiconductor shortage.

"Over the past 30 years, production of semiconductors has been offshored to South Korea, Taiwan and more recently, China," said UAW spokesman Brian Rothenberg in a statement. "Today, the United States only controls manufacturing for about 14% of all semiconductors."

The union negotiated worker protection in the event of parts shortages interrupting production in its contract, he said. Union workers will receive supplemental pay and unemployment that pays 75% to 80% of salary and continued benefits.

"However, the UAW is working with employers to minimize the impact on auto manufacturing production as much as possible," Rothenberg said.

GM said union workers at CAMI, represented by Unifor, will be paid through the provisions of their labor agreements, noting that represented seniority employees will receive about 75% of their compensation through a combination of unemployment and supplemental benefits. Workers at GM's plants in Mexico and Korea are not union-threpresented.

Protect pickups and SUVs
Demand for semiconductor use is up in part because of the coronavirus pandemic and an increase of laptop computers, which use the semiconductor chips. Cars also use them in a variety of parts and infotainment systems.

The union said if the parts were made in America, the industry would have, "more ability to respond to these demand issues," Rothenberg said. He added that the UAW is calling on the government to develop trade and policy solutions to bring advanced technology production back to the United States.

GM's Barnas said semiconductor supply for the global auto industry remains very fluid and its supply chain organization is "working closely with our supply base to find solutions for our suppliers’ semiconductor requirements and to mitigate impacts on GM."

GM is assessing the overall impact to production and Barnas declined to provide an estimated production impact from the planned plant closures next week.

"Our focus is to keep producing our most in-demand products — including full-size trucks and SUVs and Corvettes — for our customers," Barnas said.

GM builds its heavy-duty, full-size pickups at Flint Assembly Plant and its light-duty, full-size pickups at the Fort Wayne Assembly Plant in Indiana. It builds its midsize pickups at Wentzville Assembly in Missouri and its full-size SUVs at Arlington Assembly in Texas.

All four plants will continue to run on three shifts and weekend overtime, Barnas said. GM builds the Corvette at Bowling Green Assembly in Kentucky.

GM's assembly plants in Lansing and other parts of Michigan will continue to operate regularly.

"Due to the fluidity around the availability of parts, our current plan is to update the plants each week," Barnas said. "Our intent is to make up as much production lost at these plants as possible. Importantly, this issue will not impact our commitment to an all-electric future."

Ford impact
GM will provide further details on the semiconductor issue when it reports its 2020 earnings on Feb. 10.

Ford has been hit hard by a global parts shortage with factory workers in several states receiving temporary layoffs or shift reductions. Ford has reduced shifts at its Michigan Dearborn Truck Plant, which employs 4,600 hourly workers and builds the 2021 F-150 pickup.

Likewise, it has shortened evening and day shifts at Kansas City Assembly, which employs 7,300 hourly workers and builds the F-150. At the Chicago Assembly Plant, which employs 5,300 hourly workers and builds the 2021 Ford Explorer, Lincoln Aviator and Police Interceptor, Ford is expected to announce a potential production disruption.

Ford's Louisville Assembly Plant is down through Feb. 7 because of the shortage. That affects about 3,900 hourly workers building the Ford Escape and Lincoln Corsair.

Stellantis planned to shutter plants in Mexico and Canada, building the Jeep Compass and Chrysler 300, Dodge Charger and Dodge Challenger, through the end of January. A Stellantis spokeswoman said Wednesday that its North American facilities are running in February and the automaker continues to work closely with its global supply chain network to monitor the industry-wide issue.

Automakers globally that have been impacted by the chip shortage and have cut production include Toyota, Volkswagen, Honda, Mercedes-Benz, Audi, Subaru and Nissan.

GM's Global Purchasing and Supply chain organization has managed to fend off plant disruptions until now in part due to getting a jump start on the problem, a source familiar with the matter said, but declined to be named because he is not authorized to share information with the media.

The group also has a lot of experience from setting up ventilator manufacturing in a matter of days last spring and managing GM through the 2010 tsunami in Japan.

Staff writers Phoebe Wall Howard and Eric D. Lawrence contributed to this report.
Nothing about MAP in this. No impact on Bronco production?
 

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