Ford CEO Jim Farley said at the Deutsche Bank Global Automotive Industry Conference that there are a lot of bookings. It will take some time to fill them all up. The shortage of semiconductor chips means that inventories are not expected to return to normal levels until 2022.
Ford Mustang has two-year sales order
So far, 190,000 customers have booked Bronco, a rugged and durable SUV Launch delayed many times, And had to resolve the issue with the hardtop supplier. Farley said, but production is underway to fill the 125,000 reservations that have been converted into orders. The SUV has basically been sold out for two years.
In April of this year, Ford warned that a shortage of chips would force it to halve production in the quarter ending this month. Farley said that the daily supply of cars is very low and will not fully rebound until next year, but at the same time, Ford will not redesign or remodel cars like some competitors to remove functions that require semiconductors.
Ford Pro should attract more commercial customers
Farley told investors that the automaker is focusing on commercial customers. The company created Ford Pro, a global vehicle service and distribution business that aims to increase uptime and reduce total cost of ownership for commercial customers and provide them with more services.
Ford will provide the Pro version of the vehicle, including 2022 Ford F-150 Lightning Pro work truckThe reason for the low starting price of Lightning lies in the scale, sharing of components such as motors with E-Transit, and the development of new battery cells as part of the joint venture, sometimes reducing the cost from US$100 per kWh to US$80/kWh by 2025 Years later.
Ford will also make money from commercial vehicle services and plans to substantially increase the supply of parts and components for service vehicles. But Farley said that the biggest opportunity is the increase in commercial vehicle sales. Ford already has a 43% share in the United States. The CEO stated that he believes that more customers will shift from hybrid fleets to Ford fleets. The automaker is also committed to commercializing the self-driving car business.
Ford buys Electriphi
In order to further help commercial customers, Ford said it will acquire California-based charging and fleet monitoring software provider Electriphi to help commercial customers ensure productivity by providing parking charging for electric vehicle fleets and helping fleet managers monitor their vehicles. Parking charging adds other options, including charging at home or at a public site, and its location will be mapped to the vehicle’s telematics system. Customers must register for Electriphi’s charge management service.
This Ford+ plan under Farley Aims to guide automakers to transition to electric vehicles that better connect with their owners. By 2025, Ford will invest 30 billion U.S. dollars in electrification. Farley said that Ford’s spending would be on par with anyone, and it would only increase.
Ford’s Rosier Financial Picture
Because demand is so strong, Farley said that earnings in the second quarter will be better than initial forecasts and stronger than a year ago. In recent months, due to falling costs and rising prices, the financial situation has become more optimistic, which helps profitability.
General Motors also described an optimistic outlook for the quarter, saying that profits may be higher than expected by 4 billion U.S. dollars. By 2025, GM will further increase its investment in electric vehicles and self-driving car technology to 35 billion U.S. dollars. Two battery factories. Except for the two already under construction.