Ford Motor Company warned the global semiconductor shortage may force it to slash production by 50% in the second quarter but expects that issue to bottom out at that time and improve throughout balance of the year. The automaker beat Wall Street’s profit estimate earning 81 cents a share versus the consensus 21 cents a share. “There are more white-water moments ahead of us we have to navigate. The semiconductor shortage and the impact to production will get worse before it gets better. In fac we believe the second quarter will be the trough for this year,” said CEO Jim Farley. Ford has been able to offset some of the impact of lost production by boosting the average transaction price per vehicle sold, from US $44,000 to US $48,000 according to research firm Edmunds.com

For more: https://www.reuters.com/business/autos-transportation/ford-posts-profit-sees-chip-shortage-bottoming-out-2nd-qtr-2021-04-28/

www.edmunds.com

 

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