Proper now, Ford is type of like Barry Bonds in 2001: Dwelling run after residence run after residence run. And, very similar to Bonds, the Blue Oval isn’t seeing the type of financial success that might include this many homers. Barry had 73 residence runs, and Ford has had the brand new Bronco, F-150 Lightning, Maverick, and Lincoln Navigator. And now the corporate is pausing manufacturing as a result of chip shortages.
In a latest earnings name, Ford CEO Jim Farley and CFO John Lawler had been referred to as on to interrupt down why the corporate missed Wall Avenue’s This fall earnings expectations. On prime of that, shares of Ford dropped 9.7 p.c final Friday.
So, what provides? Why is Ford — an organization with a number of smash hits in a row — struggling? And why did Barry Bonds, the house run king, get denied a spot within the Corridor of Fame? Properly, let’s focus on the Ford stuff, since this can be a car web site and all.
All of it has to do with the chip scarcity. The corporate has confirmed — in keeping with CNBC — that it might be pausing manufacturing subsequent week for the Bronco, Explorer, F-150, Ranger, Mustang Mach-E, Transit and Lincoln Aviator. This can affect vegetation in three states in addition to one in Mexico.
“The worldwide semiconductor scarcity continues to have an effect on Ford’s North American vegetation – together with automakers and different industries around the globe,” Ford wrote in an announcement. “Behind the scenes, we now have groups engaged on the best way to maximize manufacturing, with a continued dedication to constructing each high-demand car for our clients with the standard they count on.”
Ford offered 1.9 million autos within the U.S. in 2021. That’s down 6.8 p.c from the 12 months earlier than. Once more, that is principally — if not fully — because of the semiconductor chip scarcity and provide chain woes.
Proper now, it appears to solely be a one-week pause. It stays to be seen if the pause will lengthen previous that or if this plan will affect orders individuals have already made for the affected autos.