By Sam Boughedda
Investing.com — Shares of Ford Motor (NYSE:F) fell 1% at the open Monday after a report from Reuters said the company will suspend or slash production at eight of its factories in the U.S., Mexico and Canada next week due to chip supply constraints.
Ford warned last week that the chip shortage and the variability in supplies of key components would hurt its vehicle volume in Q1. It also blamed the shortfall for a quarterly loss before interest and taxes in Europe at the end of last year.
According to Reuters, production at the company's factories in Michigan, Chicago, and Cuautitlan, Mexico, will be suspended, while in Kansas City, its F-150 pickup truck output will be halted with only one shift running for Transit van production.
In addition, Reuters said, Ford will have a single shift or a reduced schedule at Dearborn and its two factories in Louisville, Kentucky, and stop overtime at the Oakville factory in Canada.
On Friday, the company's shares fell 9.7% after it missed earnings and revenue expectations, reporting earnings per share of $0.26 on revenue of $37.7 billion. Analysts had predicted EPS of $0.44 on revenue of $41.23 billion.