Ford Motor Co. announced Thursday that it would cease operations at its Flat Rock Assembly Plant in suburban Detroit next week due to a global semiconductor shortage.
The automotive sector is now battling a global chip scarcity caused by the COVID-19 epidemic, which has led businesses to reduce output, but high vehicle prices have largely countered the effect.
Last month, the manufacturer warned that the chip shortfall would result in a decrease in vehicle sales in the current quarter.
Ford paused production at its Kansas City assembly plant, which produces F-150 pickup trucks, for a week last month owing to a chip shortage.
Ford’s other North American facilities will continue to operate normally.
Reuters and Hannah Lutz contributed to this article.