Ford (F) will halt production at its Kansas City assembly plant for a week, a move that will affect the production of its top-selling F-150 pickup vehicles. Reuters reports that the automaker is facing chip shortages, which has affected production operations. F shares rose 3.97% to close at $17.83 on February 25.
Ford is a U.S. company that designs, manufactures, and sells cars, trucks, and automobile parts. Ford’s upcoming earnings report for Q1 2022 is scheduled for April 28.
Suspending production at the Kansas City assembly plant comes on the heels of Ford complaining of the impact of semiconductor bottlenecks. However, Ford plans to continue production at the Dearborn Michigan plant, which also manufactures the F-150 pickups.
Due to the global semiconductor shortage, the automaker has already suspended production operations at eight of its plants in North America. The automaker has also warned that this quarter could produce its lowest number of vehicles due to the shortages.
A shortage of semiconductors in the auto industry threatens to derail many production operations. For starters, the chips are commonly used in the computer management of engines. They also assist in powering driver assistance features in self-driving cars. Due to shortages, some automakers have had to produce certain vehicles without driver assistance features.
Last week Wells Fargo analyst Colin Langan reiterated a Buy rating on Ford stock with a $26 price target, implying 45.82% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 8 Buys, 7 Holds, and 2 Sells. The average Ford price target of $23.44 implies 31.46% upside potential to current levels.
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