Ford to Idle or Curb Output at More Plants Because of Chip Shortage

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Ford Motor Co. will close several U.S. factories through much of July and cut output at others as the computer-chip shortage that has plagued the auto industry for months spills into the second half of 2021.

Ford said Wednesday that its pickup truck factories in Michigan, Kentucky and Missouri will reduce or stop production for much of July, while an Explorer plant in Chicago will be idled for the entire month. Other models that will see production cut or scrapped in July include the Lincoln Nautilus and Ford Escape SUVs and the Ford Mustang sports car.

The closures signal that the chip shortage will hamstring the industry well beyond the second quarter, a period that some auto executives had said would mark the worst of the supply problem.

Ford said it is giving priority to the completion of thousands of vehicles that it has assembled in recent months but parked in lots near factories as it awaits needed computer chips. It will continue to build new vehicles, but will curb production so it can move out some of those waylaid models, the company said.

Ford shares fell less than 1% in afternoon trading Wednesday.

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