Ford foresees 12% sales drop in US this year: Report
Ford is expecting a 12 per cent fall in sales this year as production blockages take a turn for worse. According to a report by Automotive News, company executives informed dealers about deliveries that may stand at 1.66 million vehicles this year which is down from 1.9 million in 2021. Ford has already lost 1,00,000 units of production after 37 suppliers failed to give parts on time, added the report.
The worldwide semiconductor shortage has adversely impacted Ford as well as established automakers and the issue doesn't seem to ease anytime soon. Last, month, Ford had reported earnings that were not up to analyst estimates and also shared its woes about a slow beginning to this year due to a stressed supply chain. Ford chief financial officer John Lawler had shared that though there is significant demand for the company's product, it is the supply chain that restricted what the automaker can produce and what can provide.
Ford has also informed dealers they will not receive any new-vehicle retail allocation until the end of May which may leave the showrooms empty during the upcoming seasons. The Automotive News also reported about Ford's plans to ship and sell partially built vehicles that are awaiting semiconductors or related components that are mainly used for non-safety critical features.
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Coming to Ford's electrification goals, the company is considering separating its EV business from its internal combustion engine manufacturing business with an aim to achieve valuation at par with Tesla. The EV company which is currently the world's largest producer of EVs has a market value of close to $1 trillion.