Ford to halt production at Michigan plant due to chip shortage

FILE PHOTO: FILE PHOTO: Ford logo is seen at the North American International Auto Show in Detroit, Michigan
FILE PHOTO: The Ford logo is seen at the North American International Auto Show in Detroit, Michigan, U.S., January 15, 2019. REUTERS/Brendan McDermid

March 31, 2022

(Corrects paragraph five to say Dearborn, Michigan-based automaker, not Detroit based)

(Reuters) -Ford Motor Co on Thursday said it would halt production at its Flat Rock Assembly Plant in Michigan next week, where it builds the Mustang, due to a global semiconductor shortage.

The auto industry is grappling with a global chip shortage triggered by the COVID-19 pandemic that has forced companies to cut production, although high car prices have partially offset its impact.

The automaker had warned last month that the chip shortage would lead to a decline in vehicle volumes in the current quarter.

Last month, Ford halted production at its Kansas city assembly plant that makes F-150 pickup vehicles for a week due to the chip shortage.

Production at other North American plants of the Dearborn, Michigan-based automaker will continue as normal, Ford said.

(Reporting by Kannaki Deka in Bengaluru and David Shepardson in Washington; Editing by Vinay Dwivedi)