Ford Halts Production At Mexico Plant Amid Snarled Supply Chains
October 15, 2021 |Ford Halts Production At Mexico Plant Amid Snarled Supply Chains
The Ford Motor Company Hermosillo assembly plant in Hermosillo, the capital city of the Mexican state of Sonora, temporarily suspended operations Friday due to a shortage of materials, according to Reuters, citing the plant's labor union.
The Hermosillo assembly plant currently assembles the Bronco Sport SUV and Maverick compact pickups for the North American market. Production of those vehicles was halted Friday due to supply shortages - there was no mention of what supplies were in short stock.
The union said workers would be paid 75% of their salaries on Friday. This isn't the first time the plant has shuttered operations. The last time was between Oct. 11-12.
Ford has struggled all year to maintain consistent operations at its assembly plants due to the impact of the global chip shortage. Lately, the company recently suspended production at its Flat Rock, Michigan, plant and another facility in Kansas City, Missouri.
Last month, Ford CEO Jim Farley told Yahoo Finance that semiconductors shortages continue to challenge the company but see better conditions in the fourth quarter than third. He acknowledged the chip shortage will be an issue for the auto industry into 2022.
Ford's dealer inventories are extremely thin. As of the first of this month, there were 236,000 vehicles in stock with about a 38-day supply, well below the average 60- to 70-day supply. Sales have also plunged, down 27.6% in the third quarter from a year ago and 31.5% from the third quarter of 2019.
Declining sales and limited supply come as average new car prices continue to skyrocket to new highs.