chip

Ford F-150 production will halt again as chip shortage worsens, report says

Prepare for F-150s to dwindle in supply.


Steven Ewing/Roadshow

The semiconductor chip shortage continues to ravage the US auto manufacturing sector, and America’s best-selling vehicle is in the shortage’s crosshairs once again. According to a report from Automotive News, which viewed a bulletin sent to employees, production at Ford’s Dearborn Truck Plant and part of its plant in Kansas City will shutter temporarily without enough chips to build the F-150. The shutdowns will take place the weeks of May 31 and June 14.

Ford did not immediately return a request for comment to confirm the shutdowns, but the automaker in the past said it expected big hits to production — half of what it should build won’t happen — through this quarter. The company already implemented shutdowns at various plants as supplies for the crucial chips continue to dwindle. Building on the F-150 shutdowns, the automaker’s plant in

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Car shopping isn’t likely to get easier, as chip shortages deplete auto dealers’ lots

For the next few months, Charlie Gilchrist figures his 11 car dealerships in Dallas-Fort Worth will sell just about every new vehicle they can get from the factories — and at increased prices.

In normal times, that would be cause for joy. Not so much now.

A global shortage of computer chips has forced automakers to slash production. The result has been far fewer vehicles on dealer lots, just as the waning pandemic has fueled pent-up consumer demand for cars, trucks and SUVs.

With shrunken supply and robust demand, dealers like Gilchrist could sell many more cars and trucks, if only they had more. Even at elevated prices — the average new-vehicle sales price tops $40,000, up nearly 10% in two years — customer demand exceeds supply.

“It’s pretty evident when you pull onto our lots that there’s not much selection,” said Gilchrist, whose lots carry brands ranging from General

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Chip shortage impact remains ‘controlled’

MILAN (AP) — The Stellantis automotive company created out of the merger of Fiat Chrysler Automobiles and PSA Peugeot reported Wednesday a 14% increase in first-quarter revenues, despite a drop in production due to the semiconductor shortage.

Stellantis revenues for the first three months of 2021 were 36.9 billion euros, compared with 32.4 billion euros ($44.42 billion) in the first three quarters of last year. The merger became formal on Jan. 17, 2021, creating the world’s fourth-largest carmaker, and the figures take into account the individual performances of Fiat Chrysler and PSA Peugeot in the preceding periods.

Lost production due to the global chip shortage for the period was 190,000 vehicles, Stellantis Chief Financial Officer Richard Palmer said. Eight of the company’s 44 plants are currently affected, leading to reductions in shifts or vehicle lines. Palmer said the impact was likely higher in the second quarter but “is still very

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Rental Companies Buy Up Used Cars as Chip Crisis Get Worse

The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction.

This is uncharted territory for the likes of Hertz Global Holdings Inc. and Enterprise Holdings Inc., which have made their profits by purchasing new vehicles cheaply in bulk, renting them out for as much as a year and selling them at auction. In the past, they have bought some used cars to shore up an occasional unforeseen burst in demand, but rarely for the mainstays of their fleets.

“You would never go into auction to buy routine sedans and SUVs,” said Maryann Keller, an independent consultant who used to be on the board of Dollar Thrifty Automotive Group, which is now part of Hertz. “These are special circumstances. There is a shortage of cars.”

The demand is sending used-car costs

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