Ford MotorFor the three months ended in September, profit of $1.8 billion was reported SeptemberThe company attributed the decline in revenue of $600 million to the global shortages of computer chips.
RevenueThe automaker reported that the automaker saw a drop of around 5 percent to $35.7 billion Wednesday. InThe same period was a year ago, when autos sales rebounded after a slump due to the coronavirus pandemic. FordEarned $2.4 billion from $37.5 billion in revenues
FordAccording to the company, its supply of semiconductors has improved markedly since the second quarter and it expects further improvement in the fourth quarter. However, the tight supply of chips will likely to continue to plague the auto industry for some time.
“I expect the constraints on chips to remain fluid through 2022 and could extend into 2023, but we do expect the severity to reduce,” Ford’s chief financial officer, John Lawler, said in a conference phone call with reporters.
DespiteThe shortage of computer chips FordIt raised its earnings outlook to 2021 and announced that it would resume paying a quarterly dividend in the fourth period.
EarlierOn Wednesday, General MotorsComputer chip shortages have also caused a decline in profits at.
While G.M. The chip shortage hit G.M. FordIn the third quarter FordIt had more difficulties earlier in this year, because one of its key suppliers was slowed down by a fire at a plant in Japan.
ModernAutomobiles need dozens of computer chips to support a wide range electronic components like engine controllers and infotainment system. ProductionThe supply of automotive chips fell significantly during the pandemic. This left automakers without enough vehicles to run their plants for weeks and dealers with fewer new vehicles.
OneThe upside to the shortage is that vehicle prices have increased, increasing profit for automakers on every truck and car they sell.
InIn the past, the companies often made more vehicles than consumers wanted. At times, each company had nearly one million cars or trucks on their dealer lots, awaiting sale. But Ford WednesdayIt had a rare backlog of orders that topped 100,000 vehicles in the United States. NewThe following models are popular: BroncoSport-utility Vehicle, the Mustang Mach-E electric car and F-150 pickup trucks
Source: NY Times