Ford to shut Chennai plant for a week due to semiconductor shortage

Ford has been forced to shut down its Chennai plant for a week due to the shortage of semi-conductors, industry sources told CNBC-TV18.

Besides the Chennai (Tamil Nadu) plant, vehicle production at Ford’s Sanand plant (Gujarat) is also expected to be affected by the semi-conductor shortage, the channel said.

Production is expected to be “adjusted in line with the shortage,” the sources said. The shutdown is expected to impact production in February and March 2021 as well, and Q4FY21 as a whole.

This comes even as the United States automobile maker has been trying to streamline supplies, but “there are serious supply chain challenges,” it added.

Supply shortage is due to the “global semiconductor shortage,” Ford said. It is expected to affect the entire automotive sector.

In a statement on January 18, the company said: “In Chennai, we have pulled ahead a down week to this week due to a supplier part shortage connected to the global semiconductor shortage. We are working closely with suppliers to address production constraints tied to the global semiconductor shortage and working to prioritize key vehicle lines for production, making the most of our semiconductor allocation.”