Ford produced 700,000 fewer vehicles in the second quarter of 2021 when compared with the same period of last year, but that did not stop the automaker from turning a nice $561-million profit as The Washington Post notes.
In Europe, some makes have resorted to delivering cars without some technological features or other comfort elements because of the lack of chips to enable all the needed components to operate. Naturally, once a steady supply of chips is secured, those vehicles will get the missing elements at no extra cost to their owners. Unfortunately, the move will require a visit to the dealer to fit the parts, and time is money, so automakers might have to offer complimentary vouchers to owners for their time.
The global chip shortage has also affected deliveries of the PlayStation 5 gaming console, and its Microsoft rival was not spared. In the case of automakers, the issue lies with the nature of modern automotive manufacturing, which follows the just-in-time, just-in-sequence production philosophy.
The said philosophy was developed many decades ago and it has the purpose of preventing automakers from stockpiling parts, and just receiving them when they are needed. The strategy works great when everything is exactly right in the supply chain, but a snag here and an issue there will lead to production disruptions. As you can observe, this is what happens when something goes wrong.