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

[Sgt Beavis]

Offset for Q1...since that's behind us who cares? Q2 doesn't look so good...per Farley.

Amazing how many people around here missed that.

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[North7]

Amazing how many people around here missed that.

 

[Bdisco]

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.bbc.com/news/technology-56486242

I think things will get stable by the fall but certainly its going to be complicated" Volkswagen's North America CEO Scott Keogh tells
@bbcaaron
the car industry's computer chip shortage could last another six months and lead to production cuts.

Farley echoed VW NA president's words. Yeah it's bad now but wait 'til the second half.

 

[timhood]

It shouldn't surprise me, but it does, how people can read the same article and by a headline completely misinterpret what was said.

What people think it said: "Ford: Our chip problems have been mostly solved."

What it actually said: "Ford: We worked around the chip problems in Q1, but we are going to really feel the impact especially in Q2, but also Q3 and Q4. We're making changes to work with it, but expect a huge impact, particularly in Q2."

 

[croyco]

The question is who torched the plant.
Sounds like arson to me.

 

[Razorbak86]

The question is who torched the plant.
Sounds like arson to me.

Power surge in one of the machines in the middle of the night. No evidence of arson.

 

[timhood]

Power surge in one of the machines in the middle of the night. No evidence of arson.

But did that machine have AI?

It could have been depressed from all the long working hours and no breaks/PTO. Maybe it planned a murder-suicide.

 

[vrtical]

Power surge in one of the machines in the middle of the night. No evidence of arson.

why does it always occur in the middle of the night

 

[Alfabeast]

Corporate talking to itself here ... total BS when juxtaposed to me having to delete my tow hitch to get a chance at an order. On "top" of (no pun intended) the top fiasco. They picked a supplier that's good at moonroofs but maybe not big thermoformed parts. Mainstream media chip story is a convenient distraction. So stuff your speech and get on the front lines and start making parts.

 

[UtahLars]

I guess this means any Bronco delays are only likely caused by model specific supply issues.

Yeah I don’t think that’s what it means. The “completely offset” remark is historical. It relates to Q1 only. And offset what? Production numbers? Revenue? EBITDA? Impossible to tell from this what he means, though if you wanted to wade through the financials you could probably figure something out. As I read this, he has no handle on the chip situation. Indeed, its pretty dire in that he says that the chips that Ford needs for its vehicles are NOT the ones where everyone’s scrambling to ramp up production, but older ones more suitable for Ford’s needs. So I don’t find much here to be enthusiastic or reassured about. To me this is just — pay attention to something else and don’t watch the kettle or it will never boil.

 

[Lilj4425]

Drove by my local Ford dealership a little while ago and only saw five new vehicles on the entire lot. Two F-150’s, a Mach E, an Explorer, and a Ranger. That’s it. Crazy.

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