Ford (F) - Get Ford Motor Company Report is reportedly halting production at the Michigan factory that recently began building its Bronco SUV for a lack of parts, while curtailing production at eight additional factories due to the global semiconductor shortage.
Shares of the Dearborn, Mich., company at last check were off nearly 1% to $14.89. They're up almost 70% year-to-date.
Ford said the Wayne, Mich., plant that produces the Bronco and Ranger pickup will be shut the weeks of July 5 and July 26, Bloomberg reported.
The automaker did not specify the parts that are closing the Bronco facility, but it is not due to the chip shortage or a removable roof that caused a delay in the SUV’s launch.
Ford is also curtailing production at eight additional factories in July and August due to the global chip shortage.
The company said it was diverting its scarce semiconductor supply to finish nearly completed vehicles that are awaiting chips before being sent to dealers. New-car lots are emptying out.
“We’re prioritizing completing our customers’ vehicles that were assembled without certain parts due to the industrywide semiconductor shortage,” Ford said in an emailed statement to Bloomberg. “This is in line with our commitment to get our customers their vehicles as soon as possible."
Chief Executive Jim Farley said this month that the automaker had received 190,000 reservations for the Bronco, and some 125,000 had been converted to orders to build the new SUV.
The chip shortage is expected to cost the global automotive industry $110 billion in revenue in 2021, consulting firm AlixPartners said last month.
Earlier this month, Ford said its second-quarter earnings would exceed forecasts even as it cautioned about the uncertainty linked to the chip-supply shortage. The company is scheduled to report earnings on on July 28.
Ford shares recently jumped to a six-year high after J.P. Morgan analyst Ryan Brinkman raised his price target by $2 to $18 a share -- the highest on Wall Street -- while affirming his overweight rating.
In May, Ford said it would trim output of its vehicles, including its top-selling F-150 truck, intermittently through June at eight North American plants, due to the semiconductor shortage.