Ford plans to suspend or cut production at 8 factories due to chip shortage, Reuters reports

• Ford is to suspend or cut output at eight of its factories due to a chip shortage, Reuters reported.
• It will impact factories in the US, Canada and Mexico.

Ford plans to suspend or cut production at eight of its factories following a slump in its shares, affecting the US, Canada, and Mexico, Reuters has reported.

The automaker warned of a chip shortage that would lead to a decline in vehicle volume in the current quarter – but a spokeswoman told Reuters Friday that the company was expecting vehicle volume to increase significantly in the second half.

Ford's fourth-quarter earnings were lower than expected and the company forecasts a slower recovery through 2022 than its rival General Motors. The news prompted a 12% fall in its stock.

According to Reuters, the factories affected are in Michigan, Chicago and Cuautitlan, Mexico.

Overtime at its Oakville factory in Canada will be scrapped and the production will be on a single shift or reduced schedule in Dearborn, Kentucky, and Louisville, Reuters reported.

Ford did not immediately respond to Insider's request for comment.

The Ford spokesperson told Reuters the changes could take effect as soon as Monday.

Insider's Grace Dean reported in November that the US has a shortage of around 80,000 truck drivers, causing havoc across the US supply chain.

Ford CFO John Lawler told Fox Business Friday that he believed the chip shortage would easy in the second half of 2022.