Ford slashes vehicle production at six plants in North America due to chip shortage
Ford Motor is significantly cutting production at six plants in North America due to an ongoing global shortage of semiconductor chips, including facilities that produce highly profitable pickup trucks. The impacted plants are in Illinois, Ohio, Kentucky, Michigan, Missouri and Ontario, Canada. They produce an array of products – from F-150 pickups and vans to the Ford Explorer SUV and Ford Escape crossover. Ford also is canceling overtime shifts at the plant the weeks of April 26, May 10, May 31 and June 21. Overtime shifts at the plant are being terminated for eight weeks through most of June.cnbc.com
Semiconductor stocks surge even during chipmaker shortage, but the charts hold a warning
Ford announced plans last week to temporarily idle production of its F-150 at a Michigan plant, and Chinese EV start-up Nio announced a five-day shutdown of a factory. These automakers joined a growing list of companies halting production, including GM and Jeep automaker Stellantis. The semiconductor stocks are rallying undeterred, though. The SMH semiconductor ETF has gained nearly 11% this year, almost double the gains on the broader S&P 500. A head-and-shoulders pattern – formed by a high, a higher high and a lower high – suggests a failed attempt to break out and indicates possible downside ahead.cnbc.com
Global semiconductor shortage forces automakers to build vehicles without some computers
A global semiconductor shortage and a February winter storm have combined to force Ford to build F-150 pickup trucks without some computers. The move is the latest ripple from the global semiconductor shortage, which also forced Honda and Toyota to announce production cuts at some North American factories. General Motors also has been forced to build pickups without some computers and install them later. Industry officials say semiconductor companies diverted production to consumer electronics during the worst of the COVID-19 slowdown in auto sales last spring. Global automakers were forced to close production plants to prevent the spread of the virus.
Chip shortage forces Ford to build trucks without computers
A global semiconductor shortage and a February 2021 winter storm have combined to force Ford to build F-150 pickup trucks without some computers. (AP Photo/David Zalubowski, File)DETROIT – A global semiconductor shortage and a February winter storm have combined to force Ford to build F-150 pickup trucks without some computers. The move is the latest ripple from the global semiconductor shortage, which earlier this week forced Honda and Toyota to announce production cuts at some North American factories. General Motors also has been forced to build pickups without some computers and install them later. AdAutomakers have said they don't expect the chip shortage to get any better before the third quarter of the year.
Ford cutting shifts, partially building F-150 pickups and Edge SUVs due to chip shortage
Ford Motor on Thursday said the global shortage of semiconductor chips and winter storms impacting the availability of other parts in the U.S. are causing it to cancel shifts at two plants and build F-150 pickups and Edge SUVs without certain parts. The automaker plans to complete building the F-150 and Edge models in "a number of weeks" when the parts, including some electronic components with semiconductors, are available. The number of vehicles impacted is expected to be "in the thousands," according to a Ford spokeswoman. The production cancellations include three shifts through Friday at a plant in Kentucky that produces Ford Escape and Lincoln Corsair crossovers. Ford also confirmed downtime earlier this month as well as a day next week at a plant in Germany that produces the Ford Fiesta car, which is no longer sold in the U.S.cnbc.com
Ford boosts investment in electric and autonomous vehicles to $29 billion through 2025
Greg Baker| AFP | Getty ImagesDETROIT — Ford Motor plans to invest $29 billion in electric and autonomous vehicles through 2025, the company announced Thursday when it reported better-than-expected fourth-quarter earnings. Ford said its plans include $7 billion in self-driving vehicles and $22 billion in electrified vehicles, up from $11.5 billion through 2022. The company is including previous investments of roughly $7 billion since 2016, bringing Ford's new investment commitment to $10.5 billion through 2025. Adjusted EPS : 34 cents versus an expected loss of 7 cents: 34 cents versus an expected loss of 7 cents Revenue: $33.2 billion versus $33.89 billion expected Shares of Ford jumped by as much as 4% during after-hours trading Thursday before leveling off to about $11.40, up less than 1%. That doesn't factor in a global shortage in semiconductor chips that he said could lower Ford's earnings by $1 billion to $2.5 billion this year.cnbc.com
Ford's U.S. sales fell 15.6% in 2020 due to Covid and F-150 availability
U.S. auto sales for Ford Motor fell 15.6% last year due to the coronavirus pandemic, a decline in commercial fleet sales and tight inventories of its F-150 pickup trucks. Sales of the popular full-size pickup tumbled by about 33% in the fourth quarter from the same time last year, the automaker reported Wednesday. He said inventories of the F-150 were 141,000 units to end last year, down from 267,000 a year earlier. Ford's 2020 sales decline is expected to be in line with the overall U.S. automotive industry, which is projected to be off by about 15% to 14.5 million vehicles. It also ends an unprecedented five-year streak of sales topping 17 million units.cnbc.com
Ford's November sales down 21% due to F-150 pickup supply and production
Tight inventory levels of Ford Motor's F-150 pickup due to pandemic-related plant shutdowns earlier this year and production starting for a redesigned model led to a 20.9% decrease in the automaker's sales in November, the company said Wednesday. The Detroit automaker reported sales of the popular full-size pickup were nearly cut in half – down 45.9% – compared with November 2019. That includes a 27.2% decrease in sales of its F-Series pickups, including the F-150 and other larger variants of the vehicle. Plants were forced to close for roughly two months during the second quarter during the first surge of Covid-19 cases. Automakers have been running plants that produce the vehicles nearly around the clock to refill dealer inventories.cnbc.com
Ford really needs its F-150 pickup to stay on top
Ford is beginning production on the latest version of its F-150 full-size pickup truck, which is the bestselling vehicle in the United States and a crucial product for the automaker. Ford's F-Series lineup of full-size trucks is the industry's leading truck brand, and the F-150 makes up the lion's share of sales. As of Oct. 15, Ford shares had fallen about 18% since the start of the year. The truck is also the first pickup to offer over-the-air software updates, allowing Ford to make changes to the vehicle remotely. But the F-150 remains Ford's crown jewel, and it needs that truck now more than ever.cnbc.com
New Ford CEO Farley announces operational restructuring and executive shakeup
Incoming Ford CEO Jim Farley (left) and Ford Executive Chairman Bill Ford Jr. pose with a 2021 F-150 during an event Sept. 17, 2020 at the company's Michigan plant that produces the pickup. Ford Motor's new CEO Jim Farley is shaking up the company's top ranks and restructuring operations as the automaker struggles to bolster shareholder confidence and stay relevant in an increasingly competitive market. Farley, who succeeds Jim Hackett, is streamlining operations and increasing the company's focus on key growth areas like autonomous and electric technologies as well as commercial vehicles. For years, the company has failed to gain Wall Street's confidence in its business operations, including an $11 billion restructuring plan orchestrated by Hackett. Ford shares slid 40% under Hackett, who succeeded longtime Ford executive Mark Fields as CEO in May 2017.cnbc.com
Ford recalls 550K vehicles for seat strength problem
William Walker via CNNDETROIT - Ford is recalling more than 550,000 trucks and SUVs in North America because seat backs may not properly restrain people in a crash. The recall covers certain 2018 through 2020 F-150 pickups, 2019 and 2020 Super Duty trucks, 2018 and 2019 Explorer SUVs, and 2019 and 2020 Expedition SUVs. Also included are some 2020 Explorer and Lincoln Aviator SUVs with rear seats with manual seat-back mechanisms. Ford says the trucks may not have a third pawl needed for seat strength, increasing the risk of injury in a crash. Dealers will inspect seat structures and replace them if needed.
Ford targets Tesla with its new electric truck claim
DETROIT Ford is going on the offensive to defend its highly profitable pickup franchise from emerging all-electric truck competitors such as Tesla. A month after Tesla CEO Elon Musk said his company's planned electric pickup would "be a better truck than an F-150 in terms of truck-like capability" during a podcast, Ford on Tuesday released a video of an all-electric F-150 pickup prototype truck towing 1.25 million pounds of double-decker rail cars carrying 42 F-150 pickups. However, Ford was quick to disclose that the video is a demonstration of capability and "far beyond any production truck's published capacity." Releasing such a video is an uncommon practice for Ford, which traditionally wouldn't publicize much, if anything, about a vehicle that remains years away from production. It shows the importance Ford has on retaining its sales leadership with the F-Series, even for all-electric trucks, according to Michelle Krebs, senior analyst at by moCox Automotive.cnbc.com