Ford Motor shares dipped 1% on Monday after a major Newswire reported that the firm will suspend or cut production at eight of its plants in the United States, Mexico, and Canada next week due to chip supply issues.
Last week, Ford warned that a chip shortfall and erratic supply of crucial components will impact its car volume in the first quarter. It also attributed a quarterly loss before interest and taxes in Europe at the end of last year to the shortage.
According to a major Newswire, manufacturing would be paused at the company's factories in Michigan, Chicago, and Cuautitlan, Mexico, while F-150 pickup truck production will be halted in Kansas City, with only one shift running for Transit van manufacture.
Ford will also have a single shift or a reduced schedule in Dearborn and its two factories in Louisville, Kentucky, according to a major Newswire, and will eliminate overtime at its Oakville factory in Canada.
The company's stock dropped 9.7% on Friday after it missed profits and revenue estimates, reporting $0.26 earnings per share on $37.7 billion in revenue. Analysts expected $0.44 EPS on $41.23 billion in revenue.