The American automaker expects to lose 50% of its planned production in the second quarter, compared to 17% in the first quarter.
US automaker Ford posted its best first-quarter profit in years but warned on Wednesday, April 28, that a shortage of semiconductors is affecting its factories more severely than expected. The group is now waiting “It lost about 50% of its planned production in the second quarter, compared to 17% in the first quarter”. The famine that has plagued the entire economy for several months has been exacerbated by a fire at a major chip supplier in Japan in March, and Ford now estimates it will cost $2.5 billion in 2021 accounts.
Semiconductors have become an essential element in automotive chains. But demand for this tiny component, which is also found in computers and other electronic equipment, has exploded since the pandemic fueled the rise of work from home and home entertainment. The automotive industry as a whole has been struggling to acquire them since the beginning of the year, forcing many manufacturers to temporarily suspend certain production lines. Ford said Japanese semiconductor supplier Renesas should start selling its products again in the second quarter. But the administration has warned that the effects of the shortage on production will get worse before they get better. There may be famine “It will not be fully resolved before 2022”Awaiting the group expecting 10% less yield than expected in the second half.
“A more durable job”
In total, Ford is expected to “lose” production of 1.1 million vehicles throughout 2021. However, the group started the year well with a net profit of $3.3 billion from January to March, their best since 2011. Pre-tax profit of $4.8 billion is at a record level. Its turnover increased by 6% to reach $36.2 billion. The group is highlighting the popularity of its new vehicles, including the first electric Mustang, an SUV called the Mach-E, a new version of the F150 pickup truck, and new Bronco 4x4s.
combined with “Operational improvements in the first quarter worldwide” and “The company’s ingenious management of the effects of the global semiconductor shortage”allowed this group to be released “one of the strongest performances in years”, made a statement. The group has also made an offensive in the recently developing electric vehicle segment. It announced the opening of a research center on electric battery cells on Tuesday, thus paving the way for in-house production of this key element.
“There is no doubt that we are a stronger and more resilient company”Commented on, general manager Jim Farley, who took office on Oct. Ford also kept its annual forecasts unchanged despite the more pronounced impact than expected from the chips shortage. this is the last “An aging range is creating a chill for what should have been a particularly lucrative year for Ford, which seems to have finally found its footing after battling management change and manufacturing issues.”, said Jessica Caldwell, an automotive specialist at Edmunds. Supply constraints affecting not only vehicle sales and production, but also “but they also prevent the company from taking full advantage of an exciting period of product launches that will resonate across the brand”said.
The headline in electronic commerce fell by 2.9% after the trade closure.