Ford will close some North American factories for weeks due to chip shortage Reuters

(Reuters)-Ford Motor (NYSE:) said on Wednesday that due to a global semiconductor shortage, several of its North American plants will be closed for a few weeks in July and August.

The Dearborn, Michigan-based company said in April that the supply contraction will cost it $2.5 billion this year and halve its auto production in the second quarter.

In a statement, Ford said: “Although we continue to manufacture new cars, due to the industry-wide semiconductor shortage, we give priority to completing vehicles without certain parts when customers assemble them.”

The second-largest US automaker said that its Chicago assembly plant that produces the Explorer sports utility vehicle (SUV) will be closed from the week of July 5 to the week of July 26. The factory will implement a two-shift week on August 2.

The company said it will also close the production line of one of its best-selling models, the F-150 pickup truck, for a few weeks at its Kansas City assembly plant next month.

The company said that due to the shortage of certain auto parts, the Ford Michigan assembly plant, which recently started shipping the Bronco SUV, will stop work for two weeks in July, adding that this has nothing to do with the chip shortage.

Ford shares fell nearly 1% in afternoon trading.