“To ensure we minimize our use of natural gas that is critical to heat people’s homes, we decided to cancel operations for a week, beginning Saturday, February 13,” Ford said in a statement. “We expect to return to normal operations on Monday, February 22.”
About 200 million people were under some sort of weather-related alert Tuesday as a winter storm pummeled much of the United States. After hitting Texas and Oklahoma especially hard, the storm was expected to move out through the Northeast late Tuesday, leaving a trail of heavy snow and ice in its path, CNN Meteorologist Tyler Mauldin said.
Ford said earlier this month it expects to lose 10% to 20% of its planned first quarter production, and that if the shortage extends through the first half, it could cost between $1 billion and $2.5 billion in lost earnings for the year. General Motors estimates the chip shortage will cost it between $1.5 billion and $2 billion.
Automakers cut back computer chip orders early last year when the pandemic caused temporary plant closures and slammed the brakes on auto sales and production. Electronics manufacturers, which had strong sales during the pandemic, happily snapped up the excess supply.
But when car sales bounced back sooner than expected, it left the industry struggling with a chip shortage.
Because of the shortage, automakers have been directing the supply of chips they do have to their most profitable and best-selling products such as pickups and large SUVs. In Ford’s case, that’s the the F-150 pickups. Until now, Ford’s Kansas City plant, which also makes the Transit commercial van, has been spared shutdowns.
The GM plant in the Kansas City area, its Fairfax Assembly plant, was already temporarily shut through at least mid-March by the chip shortage. It normally makes the Cadillac XT4 small SUV and Chevrolet Malibu sedan.