Thread regarding Ford layoffs

F-150's Continue to Pile Up Outdoors

Amazing that we continue to add millions of dollars of incomplete inventory to sit outside. No surprise that other industries that pay more for the chips are getting fulfilled first. Global Purchasing at its best. Still no one held accountable in management. Hitting platforms key to Ford's financial performance. Thinking it will be a tough quarter and tougher year!

From Detroit Free Press:

If you happen to notice a random parking lot filled with brand new (unsold) Ford F-150 trucks — or any other fleet of brand new vehicles — this is what a semiconductor shortage looks like.
People are sighting new stockpiles off I-96 west of Detroit and calling the Free Press, which took photos and drone shots Thursday to document the issue.
The situation is a multibillion dollar industry headache that won't go away.
"The chip shortage is a supply chain nightmare from h..l," said market analyst Jon Gabrielsen, who consults for manufacturing industry clients in North America.
"In the supply chain, missing just one part means you cannot produce the entire vehicle that uses the part. But with chips, it is any one of dozens of chips. And unlike a temporary delay due to a late shipment or even COVID impacting a single supplier plant, it takes years to design, build, and start up a chip plant so getting beyond the situation is not a short-term issue."
Both foreign and domestic automakers are affected. They've reported economic pain inflicted by the parts shortage in first quarter earnings and forecasted for 2021.
Industry leaders have made the Biden administration aware of the situation, caused by a combination of factory shutdowns, growing demand from every industry that uses technology and a limited number of suppliers.
"While the industry has always been capable and resourceful, the answer to this issue isn't easy and seems to be growing tougher with each passing day. If anyone relying on a source of chips isn't on edge right now, they're not paying attention," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.
"Vehicle production around the world has been hit by this shortage and no region has figured out a short-term remedy. This is a global problem requiring many players to solve it," he said Friday. "We are looking at production issues for much of the rest of the year for nearly all major automakers. There's just no quick fix."
Ford is a high-profile victim because it has so many new vehicles hitting the market in 2021: The Ford F-150, all-electric Mustang Mach-E, Bronco and Bronco Sport.
"Cars are 2021’s version of toilet paper in 2020. We are taking a lot of retail orders because we don't have anything (in stock)," Chad Wilson, general manager of Wilson Ford in Saginaw and Midland Ford, told the Free Press on April 1. "Normally, between our two stores, we'd have 150-180 F-series in stock. I think right now there might be 10."
The semiconductor shortage — combined with parts shortages created by the central U.S. winter storm in February — prompted Ford to build F-150 trucks and Edge SUVs in North America without certain parts, including some electronic modules that contain semiconductors.
"Ford will build and hold the vehicles for a number of weeks, then ship the vehicles to dealers once the modules are available and comprehensive quality checks are complete," the company said in a statement March 18.
Ford and pretty much everybody else globally have reduced production, temporarily closed factories and issued temporary layoffs.
"We are working closely with suppliers to address production constraints and will ship the completed vehicles as soon as we can," said Kelli Felker, Ford global manufacturing and labor communications manager. "The updates needed for these vehicles are tied to basic vehicle functions, such as windshield wiper motors. They are relatively simple updates."
Ford has said if the shortage is extended through the first half of 2021, as expected, it could mean $2.5 billion in economic damage.
General Motors has left open its options to manage the parts shortage, too.
“When there is a shortage of semiconductors that impacts production, in some cases we intend to build vehicles without certain modules and will complete them as soon as possible," GM has said. "This will help us quickly meet strong customer demand as more semiconductors become available. Several of GM’s plants have recently utilized this process and we will complete those vehicles as soon as possible.”
Automakers hope to make up production in late 2021.
These days, automakers and technology companies are competing with small companies for semiconductors. For example, a Texas engineering firm selling sensors that take temperature readings needed when pouring concrete at building, highway and bridge construction sites is seeing a squeeze, the New York Times reported on Friday.
"Like many other things in the modern world, from computers and cars to cash registers and kitchen appliances, the sensors require a couple of common, inexpensive semiconductors that have suddenly become a very scarce commodity," the Times said.
The headline read: "It’s a Roller-Coaster Ride: Global Chip Shortage Is Making Industries Sweat. The internet-connected world is completely dependent on the production of semiconductors."

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Post ID: @OP+1aqpcLXI

7 replies (most recent on top)

Saw F150s filling up all the motel lots in Inkster (on Michigan Avenue).

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Post ID: @cecg+1aqpcLXI

Just saw over the past weekend (April 25th) parking lots full of F150's at the Rawsonville plant near Ypsilanti. It is 30 miles one–way from the Dearborn truck plant. An employee at a local gas station said they have been driving them in for days filling up the huge lots. Just when does it become a LIE to all Ford Motor company employees that you sell new vehicles to your customers? Maybe it is after 10,000 miles Ford considers these vehicles used??? It is not just politicians who lie all the time. Obviously, corporate America is fine with lying also. (I already knew that, but I was hoping it was just at the executive level – not throughout an entire company!) I'm sure not 1 employee (union, salary, management, or executive) at Ford cares about this ethical question. It is just about the Benjamins to every one of you! I don't feel sorry for any of you if your company goes under –– the faster the better! I apologize to any employee who has actually raised this question at Ford to their management – you are not just a good employee, but a good person.

And don't worry –– I already know what the answer of the average Ford employee (union, salary, management, or executive) is –– you have turned off the odometer, so miles are not really being added to the vehicle. You should all stop lying! Talk about bad corporate culture. And nobody should actually buy your products! And shame on anyone talking about leadership at Ford!!!

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Post ID: @8yfs+1aqpcLXI

China will control all semiconductors and rare earth minerals. This is the future without a leader that stands for the USA.

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Post ID: @5zej+1aqpcLXI

Don't hate on me, but I'm waiting for a cyber truck lol

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Post ID: @1gai+1aqpcLXI

Why would anyone in management be held accountable? These units are counted as shipped. Management/Exec bonus clauses are based upon number of units shipped. Do not worry...no management/exec bonuses have been harmed in this strategic maneuver. But when the stockpile grows large enough, plant shift reductions /shutdowns will occur. Followed by more layoffs/termination company wide.

Meet the new boss,
Same as the old boss...

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Post ID: @brm+1aqpcLXI

You know how there are moments that you remember forever?

One of mine was a meeting 16 years ago. At the time the team had members and leaders in Germany, England and USA. The discussion centered around the pros and cons of sourcing parts from lower cost regions (for example, China).

The German leader and team members strongly advocated for paying a few dollars more for parts made in Germany, England, USA. They argued that in the future there would come a time when reliance on China would be the company’s downfall. They argued that a future war or political sanctions would topple Ford. The England team members concurred with the Germans.
The USA team leader (who is widely known for his arrogance) stated that the Germans were just war mongers and that there would never be another war.
A few months later the team was reorganized and the German and English team members were moved to different areas, and we used lower cost Chinese parts. This is the story of Ford - Pound Foolish.
Henry 1 would of known better.

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Post ID: @lue+1aqpcLXI

Note the run to the Biden administration for help. That help comes from my pocket and yours. Do not want to be financially responsible for fixing the problems of a company or industry that cannot effectively manage itself. Never got all of the money back last time this happened.

Corporate snowflakes.

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Post ID: @uzq+1aqpcLXI

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