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Parts shortage to halt production at KC-metro Ford, GM plants 

The Ford Motor Co. Kansas City Assembly Plant along with the General Motors Fairfax Assembly Plant will reduce production next week due to a global shortage of semiconductor chips. Ford plans to temporarily reduce its shifts, while GM said it will shut down production for one week on Feb. 8.

Production at two Kansas City-area motor plants will be temporarily reduced or halted beginning next week.

Due to a global shortage of semiconductor chips, the Ford Motor Co. Kansas City Assembly Plant in Claycomo will go from three shifts to two for its popular F-150 pickup.

General Motors intends to temporarily close its Fairfax Assembly Plant in Kansas City, Kan. for one week beginning Feb. 8, halting production of its Chevrolet Malibu and the Cadillac XT4.

A semiconductor is a material product usually comprised of silicon, which conducts electricity. A semiconductor chip is an electric circuit with many components such as transistors and wiring formed on a semiconductor wafer, and can be found in thousands of products such as computers, smartphones, medical equipment and more.

Other Ford plants GM also plans to idle entire plants next week in Ontario and Mexico, while running a South Korean facility at half capacity.

For both, the impact could be big. A production slowdown due to the chip shortage could lower Ford’s adjusted earnings by $1 billion to $2.5 billion, according to Ford CFO John Lawler in a report by Reuters.