How soon before Wall Street figures out Tesla gets top priority from chip
makers?
A Sea of Incomplete Ford F-150 Pickups: Over 60,000 and Counting
by Thom Taylor on July 29, 2021
The microchip supply chain disruption doesn’t really hit you until you see the
sea of trucks parked one after the other. Aerial views show only a portion of
the over 60,000 to 70,000 Ford F-150 pickups sitting idle waiting to be
completed. While it is expensive to shut down assembly lines, it is becoming a
larger problem for Ford having to park so many trucks.
The Kentucky Speedway is where some of the 60,000-70,000 Ford F-150 trucks are
stored
Ford F-150 trucks are parked in a lot before being shipped | Spencer
Platt/Getty Images
Since mid-April Ford has been sending some F-150s without the necessary chips
to Kentucky Speedway. The Speedway is near where F-150 trucks are manufactured
in Louisville, Kentucky. But that venue only can hold around 5,000 vehicles.
“Ford will build and hold these vehicles for a number of weeks,” Ford
spokesperson Kelli Felker told WCPO-TV. “Then it will ship the vehicles to
dealers once the modules are available and comprehensive quality checks are
complete.”
Only Ford knows for now how much holding F-150s for chips will cost
Thousands of F-150 pickups await chips before completion | Facebook
The same story is true in Detroit and Kansas City, where F-150s are also made.
Empty lots and fields are now full of countless Ford pickups. Only Ford knows
how much money this costs, but it has got to be hundreds of millions of dollars.
Plus, Ford has to take extra steps to ensure the trucks are ready for
dealerships. That means increased inspections for the retrofit procedure. The
good news is that Ford is finally getting its hands on semiconductor chips. But
it is looking like the backlog could run to the end of 2021, and possibly
beyond.
This is all a result of the COVID-19 pandemic, which shifted microchips away
from vehicle manufacturing to electronic component manufacturing. The shift was
partly due to computer and video game console sales skyrocketing as people
looked to fill time during lockdowns. It was also based on what automakers
anticipated needing with sales down during the height of the pandemic.
Prices of semiconductors have risen as companies bid up prices
Ford F-150 trucks are parked in a lot before being shipped | Spencer
Platt/Getty Images
Now, with the shortage has also come increased prices for semiconductors.
That’s because electronics makers and car manufacturers are all bidding up the
limited supply. So this is another hit that Ford will have to absorb.
Originally, Ford expected it would be short about 200,000 to 400,000 trucks in
2021. Now, it looks like that figure will explode to 1.1 million vehicles. Yet,
Ford saw a $24.13 billion return in the second quarter of 2021. That compares
favorably to the $16.62 billion for the same quarter last year. It estimates a
loss of $2.5 billion from reduced supplies for 2021.
Who else besides Ford does this affect?
Numerous 2009 Ford F-150 trucks are parked in a lot before being shipped |
Spencer Platt/Getty Images
Ford is not alone. GM, Honda, and Mercedes-Benz are but a few manufacturers
that have to shut down plants because of the chip shortages. Stellantis has
seen shutdowns at eight of its 44 global manufacturing plants.
The Biden administration has set aside $52 billion to help acquire and
ultimately develop and manufacture semiconductors. But this is more of a
long-range move. At least for now, the supply is slowly picking up. For now,
though, there is a sea of idle vehicles that must be dealt with.
RELATED: Ford Has A Secret Stash Of Over 6,000 2021 F150s-Why?
Mit freundlichen Grüßen/Kind regards,
Robert German
Tesla referral code: Robert85963
Sent from somewhere
