CEO Farley says Ford was able to offset almost all chip shortage impact

[GO_SOONERS_TXSUX!]

May 2022

Aye aye aye!!!

Sponsored

 

[GO_SOONERS_TXSUX!]

When the Longhorns beat the Sooners again.

Had to laugh at your username. Good stuff.

Hahaha, well you know, that game belongs to whoever wants it more! It’s always a battle. Thank you for the like lol!

 

[Cmptn845]

Of course Broncos don't have a Chip problem. You have to build Broncos in order to have a Chip problem.

 

[ipongtreat]

I sometimes think too many of us are incapable of holding two competing thoughts in our head at the same time. That leads to a lot of hand-wringing, weeping, wailing, and gnashing of teeth — and that clutters too many threads.

The way I see it, we can rightly criticize Ford in some areas while simultaneously acknowledging that some percentage of what’s happening is just par for the course given the global blankety-blank show that was 2020.

thought #1: Ford has been affected by a myriad of supply chain, commodity, and labor issues that were largely beyond their control.

thought #2: Ford has done a terrible job in the communication department and also made self-induced errors that are contributing to some percentage of the delays we are seeing.

Ford is both a victim and a perpetrator. They are neither entirely at fault or completely blameless.

Wait. Don’t wait. Your choice.

 

[1975U15]

I said safe as Saban at mid-season 2009. Turnarounds don’t happen overnight. (Remember, Saban's first team at Bama lost 4 of its last 5 games, including a 6th straight loss to Auburn, and ended the season 7-6.) He didn‘t get a statue until later, but you would have to agree that his job was pretty secure by mid-season 2009.

I remember 2009. Sugar Bowl specifically.

 

[Sundancer]

I guess when you shut down all production you have it under control, this mess will continue into the 1st Q of 2022. More delays to come, and the poor Bronco buyers also have so many other shortages besides chips, I would not hold my breath.

 

[ffdemoss]

My company has 5 Fleet F350s sitting there right now...we're hoping August. We even tried Chevy...no fleet trucks avail either.

 

[jaruss01]

So is he more like Kendall, Roman or Greg The Egg?

Talk about a fall from grace

 

[Razorbak86]

Agree. However would submit the run up on the stock price also had a lot to do with 200k Bronco and Lightening reservations which were in development or announced before farleys arrival. See the pop in Ford stock after Bronco and Lightning launches.

Farley didn’t just parachute into Dearborn in October. He’s been at Ford since 2007. For several years, he was Chief Operating Officer, basically doing all of the heavy lifting for CEO Jim Hackett, the Steelcase cabinet-maker , who was kicked to the curb to let Farley take command. Farley helped guide the company through the development of the Mustang Mach-E, Bronco 6G, F-150 14G, and the Lightning.

The run-up in the stock price over the last 8 months was largely due to investors recognizing the strong, new product pipeline and the unexpected earnings beats in Q4 2020 ($0.34 actual vs. -$0.07 Street estimate) and Q1 2021 ($0.89 actual vs. $0.21 Street estimate), the first two quarters under Farley’s tenure as CEO.

 

[Stampede.Offroad]

The Renesas plant burning is real and had a major impact to certain auto-makers, but you are right that it is far from the only chip supply problem. The Japanese government stepped in to help secure replacement equipment and full production is expected to be back online soon. The bad news is that it typically takes about 2 months to produce and deliver automotive grade chips, so that means end of July for parts. Then add a month for chips to be integrated in modules and finally installed in truck.
...

At least the chips are being made in Japan where QA is usually a high priority. Slightly less concern about getting half-assed parts from machinery that isn't fully dialed in yet after new installation.

 

[Tonka Bronka]

That was a tough read. Clearly wasn't checked for errors.

Clearly, and what else is clear, is that no one gives a shit today about the work that they put out there. Horrible writing.

 

[MayhemMike]

The Renesas fire that destroyed the Naka 3 plant’s 300mm wafer fabrication line in Japan on March 19, 2021 clearly exacerbated an already tight chip supply chain post-COVID. Renesas accounts for 30% of the global market for automotive microcontroller units, and that plant was a single-source supplier for some of Ford’s chips and a dual-source supplier for others. Volkswagen, Mercedes Benz, and others were also affected by the fire.

https://www.bloombergquint.com/technology/the-world-is-short-of-computer-chips-here-s-why-quicktake
This explains it all.

 

[Razorbak86]

Baloney. The facts surrounding the chip shortage has little to do with a chip plant burning.

[...]

Does anyone really believe Ford would be suffering a chip shortage if one overseas plant became disabled?

The Renesas fire that destroyed the Naka 3 plant’s 300mm wafer fabrication line in Japan on March 19, 2021 clearly exacerbated an already tight chip supply chain post-COVID. Renesas accounts for 30% of the global market for automotive microcontroller units, and that plant was a single-source supplier for some of Ford’s chips and a dual-source supplier for others. Volkswagen, Mercedes Benz, and others were also affected by the fire.

https://www.bloombergquint.com/technology/the-world-is-short-of-computer-chips-here-s-why-quicktake
This explains it all.

“A plant in Japan run by Renesas Electronics Corp., a major provider of automotive chips, was damaged by fire in March, disrupting production for weeks.“

Source: BloombergQuint

Thanks for the confirmation.

 

[BTomorama]

My Lux package (chock full of all kinds of chips) was originally schedule for 6/7 which implies they had all of the parts and chips to build my rig on that date.

Going by his release, my shift to 6/28 could be from the rearrangement of employee holiday time to now instead of 3rd quarter. They are shutting it down now during a lower build period so that they can keep people in (i.e. not on the beach) during full production months.

Sponsored