Please ensure Javascript is enabled for purposes of website accessibility

Key Ford and GM Plants to Suspend Operations

By Howard Smith - Feb 16, 2021 at 9:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The severe winter storm is causing natural gas curtailments just two weeks after chip shortages also cut production.

A natural gas shortage caused by a severe winter storm has forced Ford (F 3.89%) to shutter its Kansas City, Missouri, factory, where the F-150 pickup and Transit van are produced, the company said on Monday. At the same time, General Motors (GM 5.55%) said four of its plants -- in Texas, Kentucky, Tennessee, and Missouri -- would suspend operations due to the storm disruptions, The Detroit News reports. 

The interruptions in production come at a time of high demand, and on the heels of other outages caused by a global shortage of semiconductor chips. Parts of the same Ford Kansas City plant were affected by the chip supply issue, but now the entire factory is expected to be shut down until next Monday. The plant produces the highly profitable F-150 pickup as well as the popular Transit commercial van. 

Ford F-150 Raptor pickup truck

Ford F-150 Raptor pickup truck. Natural gas shortages caused by winter weather have shut down a factory where the pickup is built.  Image source: Ford.

"Due to unseasonably cold temperatures in the midsection of the United States, Ford was warned that the availability of natural gas could be restricted in the Kansas City area in the coming days," Kelli Felker, Ford's global manufacturing and labor communications manager, said in a statement. She added that the decision to suspend operations was made "to ensure we minimize our use of natural gas that is critical to heat people's homes."

GM models impacted by its factory shutdowns include the Corvette, GMC Yukon, Chevrolet Suburban and Tahoe, and the Cadillac Escalade. Investors should expect to hear more details on these disruptions, since they come at a time of high demand as the companies work to rebuild inventories after pandemic-related suspensions early in 2020. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ford Motor Company Stock Quote
Ford Motor Company
F
$12.01 (3.89%) $0.45
General Motors Company Stock Quote
General Motors Company
GM
$34.82 (5.55%) $1.83

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.