Ford to suspend Fiesta production at a German plant, cites chip shortage linked to a Malaysian supplier

Ford to suspend Fiesta production at a German plant, cites chip shortage linked to a Malaysian supplier

Ford has once again announced that it will be cutting back production at its Cologne plant in Germany. According to Automobilwoche, this is due to pandemic-related failures at a Malaysian semiconductor manufacturer, which caused delivery problems at a separate door module supplier.

“Due to a production stoppage at a semiconductor manufacturer, Ford Fiesta production at our Cologne plant will be suspended from August 23 to 28,” a Ford spokesperson told Automotive News Europe. “We are working as quickly as possible to resume production.”

The Fiesta production line has been suspended several times since May due to the chip crunch. Because of this door module shortage, workers who had just returned from a month-long “plant vacation” were requested to put in shorter hours for two weeks starting August 17. “It may take even longer,” a management notice indicated, as supply flow continues to remain uncertain.

The Blue Oval employs about 15,000 employees at its Cologne facility (its European headquarters), 5,000 of which are managing the Fiesta production line. Others work in development, administration and more. Ford’s second location in Germany is Saarlouis in Saarland.

Ford to suspend Fiesta production at a German plant, cites chip shortage linked to a Malaysian supplier

It is unclear if this is linked to the semiconductor supplier based in Muar, Johor, which had been closed for weeks. The closure is likely in compliance to the national recovery plan (NRP) rules, which kept factories in non-essential categories (vehicle production included) shuttered.

Bosch China vice president Xu Daquan (otherwise known as David Xu) said Bosch’s ability to manufacture ESP/IPB, VCU, TCU and other types of chips will be gravely affected, with supply expected to be significantly reduced for the rest of August. He also noted that more than 3,000 workers in the Muar factory have been affected by this recent work outage.

There are over 50 semiconductor producers with factories in Malaysia, with Bosch being one of the big names alongside Intel, Infineon, NXP and Texas Instruments. The local packaging and testing capacity present here accounts for about 13% of global total capacity.

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Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • Gonna on Aug 20, 2021 at 3:52 pm

    It’s worth to investigate how many Bosch workers get infected with Covid19, let’s see how good is thier Factory SOP.

    Malaysia many Covid19 cluster are Factory cluster.

    Like or Dislike: Thumb up 4 Thumb down 2
  • This is something our leaders do not understand. You shut one parts factory, the entire system is affected.

    Like or Dislike: Thumb up 5 Thumb down 3
    • Dr Strange on Aug 20, 2021 at 11:22 pm

      So you prefer they remain open and become a hive for Covid clusters?

      Like or Dislike: Thumb up 8 Thumb down 0
      • Donno on Aug 23, 2021 at 10:56 am

        Menteri MITI does not think out of the box.

        From day 1, MITI should have let any big factory open for operation IF AND ONLY IF, they are willing to pay for vaccination of all of their workers. Instead it lets electronic industry (why just electronic industry?) to remain open even before their workers are vaccinated.

        Companies cannot afford to close as they have big orders will be more than willing to pay to get early vaccine doses for their workers.

        Win-win situation.

        Government gets money to roll out vaccination. No factory cluster like what is happening right now.

        Companies get to open safely.

        Like or Dislike: Thumb up 1 Thumb down 1
 

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