Meghana KandraFord says that they are expecting to have exceeded profits. Despite the increased price of their latest models, the older models have reduced prices. Hence Ford expects to have profits despite the chip shortage issue. Because despite the circumstances people buy Ford cars and this adds to Ford’s profits.
Image credits- The car connection
In a recent conference at Deutsch bank, the Ford CEO Jim Farley said that Ford will eventually raise their funding into the electric production line. It will go beyond $30 billion through 2025. Also, their self-driving software, Argo AI would need more funding in the future.
I'm looking forward to discussing our Ford+ plan for growth and value-creation with Emmanuel Rosner at the @DeutscheBank Virtual Global Auto Industry Conference this afternoon. https://t.co/IeHlDm4gkI pic.twitter.com/iA2IhkYWsA
— Jim Farley (@jimfarley98) June 17, 2021
No normality
After Q1, Ford predicted that the chip shortage would ease in Q2, but now says that Ford was hit more during the crisis. However, he did mention that the situation might get tough before becoming normal.
But this time Jim Farley says that chip shortage will not return to normality. And further, say that chip shortage will not go back to normal until some time next year.
While most analysts had a shift on prediction similarly, Ford says their customers are willing to buy despite the high prices. Referring to the prices, Farley said, “It’s just strengthening every day – pretty breathtaking actually.”
EV production line
Ford’s most popular F-150 Lightning caught the attention of the public as President Joe Biden drove the electric pickup. Further, the need for the company to focus on electric vehicle production lines increased. It is said that the F-150 received more than 100,000 pre-orders.
Additionally, their Bronco SUV starting at $28,500 received 125,000 orders. And also, the Mustang March-E has entered the European market with the highest EV sales in Norway in the month of May.
Alongside the global presence, the US government’s supportive legislation in the EV sector is of advantage. Recently the united auto workers complimented the bill which gives them extra incentives. Having an EV not only benefits the buyers and climate but also the people who work in the line.
Interestingly Ford predicts that its Q2 profits will be substantially lower than last year. Because last year during this time their investment in Argo resulted in a $3.5 billion gain.
Ford’s strategy in the EV production line has been incredible for the company so far. And the tough competition between F-150 Lightning and Tesla’s Cybertruck has been getting interesting in the past few months. Jim Farley is seen to be competing with Tesla side by side. Recently the drag race challenge between Mustang March-E and Tesla Model S Plaid was also initiated by Jim Farley.