Why Ford Is Pausing Orders On The 2021 Bronco

Amid a rash of temporary production line shutdowns due to chip shortages affecting several of its vehicle lines, including its popular F-150 pickup trucks, Ford (F) has paused online customer orders for its new full-sized 2021 Bronco 4x4 SUV.

Ford launched the Bronco in July 2020, following the release of the Bronco Sport – a compact version of the SUV.

In a memo that was obtained by the Detroit Free Press, Ford told its dealers, “Effective Monday, August 23rd, Ford has paused the creation of new reservations for Bronco vehicles. The decision to pause reservations is due to the high number of Bronco 2 and 4-door model orders and current commodity constraints.”

Ford continued in the memo by saying that new orders placed for the Bronco going forward will be extended through 2022, with plans to reopen reservations communicated by the automaker when available.

According to the Free Press, Ford also asked dealers to no longer promote Bronco reservations on their websites or through advertising initiatives.

But Ford did say that customers can continue to place orders for the Bronco if available on the build and price website, but warned that supply chain disruptions could cause some orders to be built quicker than others at the Wayne, Michigan Assembly Plant, where the 4 x 4 is produced, the news outlet said.

Ford’s Bronco has been met with strong demand from consumers, but like other automakers, Ford has been hit with commodity challenges.

Widespread chip shortages are plaguing the auto industry, causing production delays. Ford has said it estimates that its earnings will take a $2.5 billion hit as a result.

The 2021 Bronco also faced a costly recall in August, which required a hardtop replacement of all vehicles produced and sold.

Steve Gabbara, general manager of a Ford dealership in Holly, Michigan, told the Free Press: “We don't want to overpromise and underdeliver with new orders so now we're going to pause with online ordering and get everything tightened up on the Ford side so we can come back and start taking orders again.”

"All the '21 model year Broncos are sold out. All online reservations were '22 model year and beyond. They could even be '23. As of now, the only way you can guarantee a Bronco was through the online reservation system. This pause wasn't designed to flip from online ordering to dealers but instead it's a pause for Ford to get on their feet."

As of Monday at 1:05 p.m. ET, shares of Ford were trading at $13.15, down 16 cents, or 1.16%.