Ford cuts production at two German plants over chip shortage

Ford Motor said on Monday it was cutting production at its plants in Cologne and Saarlouis for the next few weeks because of a semiconductor chip shortage.

“The situation on the global semiconductor market remains tense and, according to all estimates, will continue to be so in the coming months, resulting in supply bottlenecks,” a representative for Ford said.

The automaker said it planned to make up for lost production and would prioritize vehicles already ordered by consumers.

The automaker said around a third of its 15,000 workers in Cologne would be put on reduced working hours from May 3 until June 18 and June 30 to July 9. It said production would resume on August 16 following the subsequent plant holiday.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas this year is also cited as a reason behind the chip shortage.