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Why Ford is extending production cuts in Europe on microchip shortages

Microchip shortages at Valencia afflicted manufacturing of the Kuga crossover, Mondeo midsize design and Galaxy minivan, he claimed.

Ford’s factory in Cologne, Germany, residence of the Fiesta small hatchback, was also impacted but to a “somewhat minor” extent, Rowley claimed.

Ford has prolonged brief-time do the job in the Cologne and Valencia crops, as properly as in Craiova, Romania, where the firm builds the Puma small crossover, in accordance to Automobilwoche, a sister publication of Automotive Information Europe.

Cologne will increase 3 extra days of brief-time do the job in March, Craiova will increase eight extra days of brief-time do the job while Valencia will increase fourteen extra days, Automobilwoche claimed, quoting a firm spokesman.

The scarcity coincides with minimized demand for new vehicles due to lockdowns to control the unfold of COVID-19 in its two major European marketplaces of Germany and British isles.

Rowley expects microchip provides to normalized in late spring.

“I feel at the time we get to the second quarter, this challenge will be behind us,” he claimed.

Automakers across Europe have been hit by the scarcity, which was triggered by a combination of elements which includes a surge in demand for consumer electronics these as gaming products.

Renault CEO Luca de Meo claimed he hoped to limit device manufacturing losses to below 100,000 on an earnings call very last week.

Renault has now briefly halted manufacturing in factories in Morocco, Romania and France.
Analysts say the global manufacturing shortfall in the initial half could get to one million units or extra.

They count on that chip provides to be restored in the second half and that most missing manufacturing will be recovered.