Grady Trimble of FOX Business speaks with Ford executive Darren Palmer about electric car models at the Chicago Auto Show.
Ford Motor Co. made surprising gains in the second quarter this year – powered by climbing Pickup and SUV Prices, although the global scarcity of computer chips forced it to curb production, which declined by about half.
The company reported sales of $ 26.8 billion and net income of $ 561 million – which exceeded expectations and raised hopes for the future of Ford +, the company’s new business plan.
“Ford + is about creating distinctive products and services, lasting customer relationships and user experiences that are constantly improving,” said Jim Farley, Ford President and CEO the benefits for our customers and our company will really increase over time. “
| ticker | security | Last | change | Change% |
|---|---|---|---|---|
| F. | FORD MOTOR CO. | 13.86 | +0.07 | + 0.51% |
The company also announced 120,000 reservations for the new electric F-150 Lightning and rising orders for Mustang Mach-E and Bronco – making the company “spring-loaded” for a boost in sales as global delivery lines recover from a semiconductor shortage, the companies in a number of industries.
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A Ford F150 XL truck will be on display at a dealership in Hialeah, Florida on Monday, July 26, 2021. Sky-high sales prices for its pickups and SUVs helped Ford Motor Co. make a surprising second-quarter profit despite a global shortage of computer chips that
Production of the new Lightning also creates 500 jobs at the company’s Rogue Electric Vehicle Center in Dearborn, Michigan.
The chip shortage is expected to last at least another year, according to some experts – although the company has reportedly been thinking Shipping incomplete vehicles to dealer lots where the chips can be installed as soon as they arrive.
But despite stalling production, rising demand for new Ford vehicles allowed the company to cut incentives while still increasing sales. To keep up, the company used the chips available to make its most profitable vehicles.
In June, Ford’s electrified vehicle sales for the month rose 117%, setting a half-year record of 56,570 vehicles. Meanwhile, Ford vehicle sales plummeted 26.9% year-over-year this month as the auto industry continues to feel the pain of an ongoing shortage of semiconductor chips.
“We are on a new path with the Ford + plan, financial flexibility and the determination to make us an even stronger company,” said CFO John Lawler in a statement. “We’re building connected, high-quality vehicles and services that are great for customers and profitable for Ford.”
Ford’s earnings were 13 cents per share and, according to FactSet, dramatically exceeded projections of 3-cent losses.
The strong result increased the company’s forecast pre-tax profit for the full year to $ 9-10 billion – an improvement of approximately $ 3.5 billion.
Ford also reported “continued, growing strength” in Europe and the success of its Lincoln brand in China – where the US automaker reported its highest quarterly retail sales ever.
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But Lawler told the Associated Press that increased commodity prices will consume about $ 2 billion of Ford’s pre-tax profit in the second half of the year. And at Ford’s lending subsidiary, pre-tax profit is expected to decrease by about a billion dollars as lease income is expected to depreciate.
Ford has also accelerated its journey to electric vehicles – announcing a new battery factory in Romulus, Michigan, due to open next year.
The new collaborative learning lab, named Ford Ion Park, represents $ 100 million of the automaker’s total investment of $ 185 million in developing, testing, and building battery cells and cell arrays for electric vehicles. It’s also part of the company’s $ 30 billion investment in electrification through 2025.
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Lucas Manfredi of Fox News and the Associated Press contributed to this report.
