Ford suspends production in Germany

Ford suspends production in Germany

January 16, 2021 0 By autotimesnews

The American automaker is forced to shut down Ford Focus production in Saarlouis, Germany for a month due to a lack of microchips. Deficiency of microchips has become a global problem for car manufacturers.

From Monday, Ford will halt production for a month at its Saarlouis plant, which employs about 5,000 people. Ford had previously been forced to close its U.S. plant due to a shortage of semiconductors. This problem affects not only Ford, but also Honda, Volkswagen, Audi and Daimler. Volkswagen’s production of about 100,000 vehicles is under threat.

The problem with microchips is that the companies that make them are struggling to cope with soaring demand. Smartphones, laptops and game consoles also use chips. So car manufacturers have to compete with tech companies like Apple, Samsung and Microsoft. Distribution problems caused by stricter lockdowns due to coronavirus are not helping to close the deficit.