December 1, 2022

The Queens County Citizen

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Semiconductor shortage | Ford expects to “lose 50% of its expected output in the Q2”

Semiconductor shortage |  Ford expects to "lose 50% of its expected output in the Q2"

(New York) U.S. automaker Ford on Wednesday warned that semiconductor shortages will hit its factories harder than expected, despite making strong profits in the first quarter of many years.

Juliet Michael
France Media Agency

The group now expects to “lose 50% of its production expected in the second quarter and 17% in the first quarter”.

A fire at a major chip supplier in Japan in March has crippled the entire economy for several months and Ford now estimates a value of $ 2.5 billion in its 2021 accounts.

Semiconductors are a major component of automotive chains. Demand for this small part, which is also found in computers and other electronic devices, has skyrocketed as the pandemic accelerated the growth of telecommunications and home entertainment.

The automotive sector as a whole has been struggling to get it since the beginning of the year, with many manufacturers having to suspend certain production lines.

Ford says Japanese semiconductor supplier Renault should be able to resume selling its products in the second quarter.

But management warns that the effects of the shortage on production will only intensify before they improve.

The success of new vehicles

The shortage “is not fully resolved before 2022”, the group said ates, expecting another 10% less production than expected in the second half of the year.

In all, Ford expects to “lose” production of 1.1 million vehicles by 2021.

The group had a good start to the year with a net profit of $ 3.3 billion from January to March, the best since 2011.

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Adjusted pre-tax profit was at a record 8.8 billion.

Its revenue rose 6% to $ 36.2 billion.

The team is highlighting the popularity of its new vehicles, which include the first electric Mustang, an SUV called the Mac-E, a newer version of its F-150 pickup truck, and the new Broncos.

Combined with “the first quarterly operational improvements worldwide” and “the company skillfully managing the effects of the global semiconductor shortage”, the team “achieved one of its most significant benefits, strong performance over the years” press release.

The group also recently raided a growing segment of electric vehicles. He announced on Tuesday that he was launching a research center on electric battery cells, paving the way for the internal production of this key element.

“There is no doubt that we are becoming a stronger and more resilient company,” commented CEO Jim Furley.Is October.

Ford has not changed its annual guidelines, despite a greater impact than expected from a shortage of chips.

The latter “throws cold on what should have been a particularly lucrative year for Ford, which has finally regained its rhythm after struggling with aging product range, maintenance and production issues,” Jessica said. Automotive specialist Caldwell Edmunds for the company.

Not only are vehicle sales and supply disruptions affecting production, “products need exciting time to launch, they are spilled over the entire product range, the brand,” she says. .

The title fell 2.9% in electronic trading after the close of trading.