Ford Shutters 8 Factories Due To “Persistent Supply Chain Disruptions”

Zero Hedge – by Tyler Durden

Ford Motor Co. tumbled into a bear market after a fourth-quarter profit and sales missed Wall Street expectations. Chief Executive Jim Farley warned of “persistent supply-chain disruptions” limiting its ability to meet strong demand.

Reuters reports the Detroit automaker will shutter eight factories in the US, Mexico, and Canada, beginning on Monday as it copes with chip shortages. 

Production at factories in Michigan, Chicago and in Cuautitlan, Mexico will be suspended. In Kansas City, production of its F-150 pickup trucks will be idled while one shift will run for production of its Transit vans.

The Detroit automaker will also run a single shift or a reduced schedule at its factories in Dearborn, Kentucky, and Louisville while removing overtime at its Oakville factory in Canada.

All changes will be in place for the week beginning Feb. 7. -Reuters

On Friday, Ford shares plunged 10% after the automaker reported fourth-quarter profit and sales that fell short of expectations. Shares of the company have already plunged into a bear market. Shares closed under the 100DMA on Friday and may find support on the 200DMA around $16.15 level if downward pressure on the stock is maintained.

Ford’s earnings miss “was a combination of lower volumes (chip shortage/supply chain disruption), higher raw material costs, and higher mobility spending,” BofA Securities’ John Murphy told clients in a note Friday.

Reuters’ report paints a challenging 2022 backdrop for the company as it continues having trouble sourcing chips, an ongoing issue for well over a year, and still not yet resolved.

The good news is Ford’s turnaround is underway with the launch of electric vehicles. However, it has to reduce the complexity of its supply chain, a transition that won’t be easy.

https://www.zerohedge.com/markets/ford-shutters-8-factories-due-persistent-supply-chain-disruptions

2 thoughts on “Ford Shutters 8 Factories Due To “Persistent Supply Chain Disruptions”

  1. I think they are lying to us

    sure , maybe there is a shortage of chips .. or should I say was a shortage

    Im actually thinking these “manufacturing slow downs” are due to no one buying..and or no one being able to afford to buy
    extensions of leases , and a flooded used car market , and elevated vehicle costs

  2. I searched “Which country makes the most automobiles” and this came up:

    6 Countries That Produce the Most Cars:

    https://www.investopedia.com/articles/markets-economy/090616/6-countries-produce-most-cars.asp

    And there it is: “China, well-known as the world’s biggest manufacturer, is the leading producer of cars.”

    We have been relegated to second place.

    So, Ford factories closing. It’s like the end of an era. America, where are we going? Can we see here, the deliberate sinking of a nation?

    But embedded in that nation are its NATIONALS who know what’s been stolen and what’s at stake. After we put our Bill of Rights back where it should be I want to once again be the country that makes not only the most automobiles in the world, but THE BEST!!

    .

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