The year 2020 hasn’t been kind to the automakers all around the world, especially for India as the auto industry faced a steep decline in the late 2019 and got to a point of 0 productions in the mid-2020. Even though the market is recovering from this drop fairly quick, but ford hasn’t been on the good side of this curve.
The company Ford on 14th January announced the Ford Chennai plant shut down for 3 days on the occasion of Pongal which is considered a big festival for the whole state. But due to the shortage of semiconductor used in many parts of the cars the company has now announced extended this shut down till 24th January. This issue will be affecting the company for a whole quarter which will not only affect the Indian production line but also the USA plant.
This shut down as of right now will be of 10 days but if this situation continued and no alternative source if found then that can affect the production by 50%. This semi-conductor issue will also be affecting the Gujrat plant in the coming days for about 2-3 months. Even before this issue company’s situations was very favourable, the company in the month of December only managed to sell 1662 units in total, while its total production in this financial year has just been 65,000 units.
These semiconductors are widely used in various parts of the car as today’s cars are too dependent on sensors and actuators which need semiconductors to work. Not only the automobile industry but many other industries like gaming, toys, gadgets and many others too need them so the demand of these things is quite high and with the pandemic situation, these gaming and gadget industry are facing very high demand.
The shortage of spare parts has not only affected ford in India but also many other companies all over the world like Audi and Volkswagen in Germany, Honda and Jaguar in the UK. Amongst all others, Ford is the worst affected right now, with its Chennai and USA plant shut and 3 Brazil plants at Camacari, Troller, and Taubate shut down the company needs to take important countermeasures quickly to get past this dire situation.