Ford Suffered Loss of Nearly 700k Units This Year Due to Supply Shortage

by Victoria Santiago

Ford Motor Company is expected to take a production hit as 2021 draws to a close. Due to a shortage of microchips, fewer vehicles are being made.

Ford wasn’t the only auto company affected by the chip shortage. Multiple companies shut down production for at least part of 2021. Manufacturing plants were closed and dealership lots were sparse. Paired with a high demand for vehicles, this led to prices booming for new and used cars. In fact, car prices reached new record highs this year because of the shortage.

Unfortunately, no one knows how long this chip shortage will last. Most anticipate that it will be around for a few more years at least. Some people think that we might be at the end of the chip shortage, but even the CEO of Ford, Jim Farley, believes it will last until at least 2023. Regardless of how long it lasts, the impacts will stick around for a while.

Although production was ultimately stopped, Ford considered a few other options to outmaneuver the shortage. To keep stock on dealership lots, they thought about shipping out cars without chips in them. This would actually serve two purposes: one, to get inventory on sale lots, and two, to free up Ford storage space. Tens of thousands of unfinished vehicles had been tucked away for months. Ultimately, they chose not to go this route.

Instead, the auto company has been pushing out vehicles with fewer features. Fewer features in cars mean that fewer chips are required. The company has been opportunistic about the chip shortage in this way. They’re even offering special versions of cars that are “stripped-down,” or without features. For example, the Ford Puma Design and the Ford EcoSport are both “stripped down” cars.

Ford Shortages by Model

Even though they’ve been flexible with the chip shortage, Ford is still ending 2021 with a significant production loss. A loss of almost 700,000 units, to be exact. Here’s a list of what Ford models have taken production cuts:

  • Edge (61,517 units)
  • Maverick (2,858 units)
  • Bronco (7,888 units) and Bronco Sport (24,299 units)
  • Mustang (28,291 units) and Mustang Mach-E (1,450 units)
  • Explorer (83,784 units)
  • Expedition (19,086 units)
  • Super Duty (64,853 units)
  • Escape (83,153 units)
  • F-150 (82,446 units)
  • Ranger (6,110 units)
  • Transit (53,337 units)
  • E-Series (12,904 units)

Additionally, some Lincoln models have also suffered cuts. That includes the Lincoln Aviator, the Lincoln Navigator, the Lincoln Corsair, and the Lincoln Nautilus. Altogether, the company is expected to suffer losses upwards of 694,000 units.

Buyers are feeling the impacts of the chip shortage. In fact, one SpaceX employee chose a Ford car over a Tesla. Many factors went into the car the SpaceX employee chose to buy (a Mustang Mach-E), but availability played a huge part in the process as well. At a time where car prices are at an all-time high, and stock is at an all-time low, sometimes being on the lot makes a car the best choice.