Ford India is planning to shut down its Chennai plant for a week due to semi-conductor shortage. Production at Ford's Gujarat plant will also be affected due to a shortage of semi-conductors.
Ford is trying to streamline supplies but there are serious supply chain challenges. Production will be impacted in February and March and Q4 as a whole.
Production may be adjusted in line with the shortage, sources said.
The issue of semi-conductors' shortage is affecting the entire automotive sector and is expected to continue for at least the first half of 2021.
"In Chennai, we have pulled ahead a down week to this week due to a supplier part shortage connected to the global semiconductor shortage. We are working closely with suppliers to address production constraints tied to the global semiconductor shortage and working to prioritize key vehicle lines for production, making the most of our semiconductor allocation," Ford India said in a statement.
The auto industry is using more semi-conductors than ever before while producing new vehicles with electronic features such as Bluetooth connectivity and driver assist, navigation and hybrid electric systems. Semiconductors are typically silicon chips that perform control and memory functions in products ranging from computers and cellphones to vehicles and microwave ovens.
According to Associated Press (AP) report, officials at Volkswagen, Ford, Fiat Chrysler, Toyota and Nissan all say they have been hit by the shortage and forced to delay production of some models in order to keep other factories running.