Fans of the Kentucky Derby were traversing Churchill Downs along Interstate 71 over the weekend, so you wouldn’t have noticed thousands of super-duty pickup trucks lined up as you passed through Sparta.
This shows the multi-billion dollar impact of the ongoing global semiconductor shortage on the automotive industry, especially Ford Motor Company’s super-duty trucks manufactured at the Kentucky truck plant near Louisville.
Recently, they have been built and parked waiting for parts.
“Ford will build and hold the vehicle for several weeks, ship the vehicle to the dealer once the modules are available and complete quality checks,” said Kelly, Ford’s Global Manufacturing and Labor Communications Manager. Felker responded to the free press. For questions about Kentucky stockpile on Monday.
Wall Street pays attention when America’s best-selling F-series is parked.
Ford Chief Financial Officer John Lawler told industry analysts after the first quarter financial results last Wednesday that the company parked about 22,000 vehicles at the end of March and was waiting for parts. It was.
And that number continues to grow.
“Semiconductor shortages and production impacts will worsen before they improve,” Ford CEO Jim Farley said after the earnings announcement.
In fact, Intel Corp. Pat Gelsinger, CEO of the company, predicted that the problem would plague the automotive industry “in the next few years,” Bloomberg reported Monday.
When will child care credits begin? :Checks will be rolled out in the summer.
Tip problem:The shortage has disrupted the used car market. That’s good for buyers.
According to AutoForecast Solutions in Chester Springs, Pennsylvania, the nightmares of microchips around the world are ruining car factories, which has hit Ford Motor Company’s global operations the most in terms of actual vehicles taken out of production. I am. The company calculates company announcements, shift production, and work schedules for each factory in the United States, Asia, and Europe.
So far, the production of lost vehicles this year is projected as follows ::
- Ford, 362,663 less vehicles
- General Motors, 326,651
- Renault Nissan Mitsubishi, 284,948
- Volkswagen, 207,521
- Stellantis, 202,486
- Toyota, 113,555
- Honda, 82,482
Less impacted automakers include BMW, Hyundai, Daimler and Tesla. These figures do not include joint ventures between Detroit Three and its partners such as China, Russia and Turkey. The GM number includes the subsidiary GM Korea.
Vehicle production may be supplemented towards the end of the year, but less likely to elapse each month.
Meanwhile, GM is North America’s hardest-hit automaker, based on this year’s forecasts.
- GM, 277,030 units
- Ford, 234,964
- Stellantis, 162,087
- Subaru, 45,272
- Honda, 42,951
- Renault Nissan Mitsubishi, 41,928
- VW, 36,429
- Toyota, 23,670
- Tesla, 6,418 units
There was also a slight decrease in Mazda and Hyundai.
AutoForecast provided a very detailed breakdown of the company’s operations by individual factory, production schedule and production speed.
GM will announce earnings on Wednesday. Stellantis said it would reveal shipments and revenue during the same day.
Sam Fiorani, Vice President of Global Vehicle Forecasting at AutoForecast Solutions, said:
“As vehicles become more computerized, these chips are the lifeblood,” he said. “They operate the powertrain control unit, infotainment.”
Ford was the first Detroit Three to announce higher-than-expected first-quarter earnings on Wall Street. But then the company’s forecast pushed down stock prices almost immediately.
Ford argued whether the situation was significantly different from its competitors.
“The global semiconductor shortage is affecting not only automakers around the world, but other industries, including consumer electronics companies,” said Jennifer Flake, Ford’s executive director of global product communications, at AutoForecast. In response to the data, he told Free Press.
Ford was hit by a fire on March 19 at its Renesas plant in northeastern Tokyo. Farley said it is a major semiconductor supplier that manufactures about two-thirds of all chips in the automotive industry. Chip makers do not expect to return to full operation until July.
“A full recovery in automotive chip supply is estimated to continue until the fourth quarter of this year, and in some cases 2022, making it even more difficult for the industry to recover volume in the second half of the year,” Farley said. ..
Ford expects the chip crisis to cost the company an estimated $ 3 billion this year, Roller said.
But that’s not all automakers are facing.
Although commodity prices remained stable with the 2020 contract, Ford now expects aluminum, steel and precious metal prices to rise by about $ 2.5 billion, Farley said. “So, for the rest of the year, it will hit us.”
Still, Morgan Stanley analyst Adam Jonas told investors last Wednesday, “Given the confluence of consumer power, tight inventory, and highly devastating supply chain issues. 2021 is likely to be a “strange” time for the industry. “
Contact Phoebe Wall Howard at 313-618-1034 Orphoward@freepress.com..Follow her on Twitter@phoebesaid..
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