Toyota, Ford face U.S. production slowdown due to chip shortage

Automotive manufacturers Ford and Toyota have reportedly announced their intention to stop or at least slow down production at their U.S. factories, since the auto industry is currently grappling with a shortage of critical computer chips. The shortage is induced by a high demand for consumer’s electronics during the pandemic, which has left chip manufacturers struggling to keep up with demand.

Speaking on which, Kelli Felker, a spokesperson from Ford was reportedly quoted as stating that the automaker will this week close its plant in Kentucky, Louisville which employs about 4,100 people making the Lincoln Corsair and Ford Escape models. The auto maker had apparently already planned to idle the plant for a short term, but they had to move up the time frame due to high demand and the shortage of vital semiconductors.

The auto giant went on to add that the global semiconductor shortage is presenting significant production disruptions along with severe challenges for the global auto industry including Ford, which could have a significant massive effect on the economy and jobs and given the high importance placed on auto manufacturing. 

Toyota has said that production of its popular Tundra pickup truck at San Antonio factory in Texas also has been drastically affected by this chip shortage. Speaking on which, a spokesperson of the company recently revealed that the company is  currently assessing the long term impact, but for the present month, that is the month of January, they are anticipating a reduction in the Tundra truck production by nearly 40 percent. According to some sources, Fiat Chrysler is also about to halt Jeep production in its Mexico plant, and the production of other popular models at a factory in Canada, due to the massive shortage.

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