Ford has decided to sell and ship vehicles without the chips that power non-safety features. The automaker will instead send the chips a year later to the dealers for installation after a vehicle is purchased.
Ford to Sell Vehicles Without Chips
According to Automotive News, Ford has not released the model of the affected vehicles nor the features that will not be available during shipment.
Originally, the automaker had plans to ship partially-built and undrivable vehicles to dealers, but now, the vehicles will be driveable and sellable even without the chips.
Ford's decision comes to move the partially-built vehicles crowding its factories. In February, hundreds of new Ford Broncos were spotted sitting idly in the lots near the company's Michigan Assembly Plant, all of which were deemed undeliverable because there were no chips installed.
Also Read : How Can Tesla Produce Cars Amidst Chip Shortage, Plant Shut Down; Musk Says Best Software Team in the World
Just like the other companies, Ford has been grappling with the constraints introduced by the global chip shortage. In 2021, the lack of semiconductors forced the automaker to scale back production of the popular Ford F-150.
In November 2021, both General Motors and Ford announced a deal with chip manufacturer GlobalFoundries to ease the chip shortage, according to The Verge.
Other car manufacturers have also had to make adjustments because of the global chip shortage. General Motors dropped wireless charging, fuel management module, and HD radios.
As for Tesla, the company sold some car models without USB ports, but they will be installed at a later date. Even luxury vehicles are not exempted from the shortage, as Cadillac removed its hands-free driving feature in its 2022 Escalade, while BMW started shipping some cars without touchscreens.
Boosting the US Manufacturing Industry
The global chip shortage shined a light on the state of manufacturing in the United States and how much of it has moved out of the country.
According to CNET, Intel and Samsung Foundry wants to take advantage of the rising demand for chips to reclaim the country's leadership in manufacturing electronics and vehicles.
Earlier this year, Intel said that it would invest $20 billion in two chip fabrication plants near Columbus, Ohio. The new site could house up to 8 Intel fabrication plants. The entire project will cost the company $100 billion in total.
Al Thompson, the leader of Intel's US government relations, said that they do not want to create a situation where the United States, which created the semiconductor industry and Silicon Valley, would be dependent on other countries for the product.
The US Congress is working on a bill that would give chipmakers $52 billion. The House of Representatives passed its version of the bill in February after the Senate's version of the bill was presented in 2021.
The European Union proposed $17.1 billion in new funding through a Chips for Europe project a few days later. The chip industry's new course is part of decoupling, which is pulling the Chinese and US economies apart.
As for the Asian manufacturers, they are also working on increasing the production of semiconductors. In January, TSMC said that it will invest $40 billion in new chipmaking plants and equipment this year.
In February, Ford reduced the production of vehicles in its North American plants.
In 2021, Ford was forced to shutdown its plants because of the chip shortage.
Related Article: Global Chip Shortage to Persist Until 2023--Demands for PC to Slightly 'Soften' in the Next Years
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Written by Sophie Webster
