Ford (F) – Get report It is reportedly halting production at the Michigan factory that recently began building its Bronco SUV due to a lack of parts, while reducing production at an additional eight factories due to global semiconductor shortages.
Shares of the Dearborn, Michigan company on the latest check fell nearly 1% to $ 14.89. They have risen almost 70% so far this year.
Stocks fluctuate with the S&P 500 rising to close out a strong first half
Ford said the Wayne, Michigan plant that produces the Bronco and Ranger pickup will be closed for the weeks of July 5 and July 26, Bloomberg reported.
The automaker didn’t specify the parts that are shutting down the Bronco facility, but it’s not due to a chip shortage or a removable roof that caused a delay in the launch of the SUV.
Ford is also cutting production at eight additional factories in July and August due to global chip shortages.
The company said it was diverting its meager supply of semiconductors to finish nearly finished vehicles that are waiting for chips before being shipped to dealers. New car lots are emptying.
“We are prioritizing completing our customers’ vehicles that were assembled without certain parts due to an industry-wide semiconductor shortage,” Ford said in an emailed statement to Bloomberg. “This is in line with our commitment to get their vehicles to our customers as soon as possible.”
Chief Executive Jim Farley said this month that the automaker had received 190,000 bookings for the Bronco and that about 125,000 had been turned into orders to build the new SUV.
The chip shortage is expected to cost the global auto industry $ 110 billion in revenue in 2021, consulting firm AlixPartners said last month.
Earlier this month, Ford said its second-quarter earnings would exceed forecasts even as it warned of uncertainty related to chip supply shortages. The company is scheduled to report its earnings on July 28.
Ford shares recently rose to a six-year high after JP Morgan analyst Ryan Brinkman raised his price target by $ 2 to $ 18 a share, the highest on Wall Street, while affirming his overweight rating. .
In May, Ford said it would cut production of its vehicles, including its best-selling F-150 pickup, on and off through June at eight North American plants, due to semiconductor shortages.