Q2 car output to fall 50% on semiconductor shortage: Ford
New York, United States: The global semiconductor shortage, according to Ford, will cut second-quarter auto production in half, and the supply crisis "will get worse before it gets better."
Ford expects to lose 1.1 million units of revenue in 2021, resulting in a $2.5 billion loss in earnings, according to an earnings release.
Due to a global supply shortage, Ford has reduced production of the F-150 pickup truck and other models, and other automakers have followed suit.
A recent supplier fire in Japan, according to Ford, aggravated the shortage. Although that site is expected to resume shipments by the end of the second quarter, the company warned that "the wider global semiconductor shortage might not be completely resolved until 2022."
According to Ford, the supply shortage will "get worse before it gets better." "Currently, the company believes that the issue will bottom out during the second quarter, with improvement through the remainder of the year."
The performance outlook was downbeat despite Ford reporting many better-than-expected first-quarter results.
The Detroit-based manufacturer posted $3.3 billion in earnings, compared to a $1.9 billion loss the previous year, as sales increased 5.6 percent to $36.3 billion.
In after-hours trading, shares dropped 3.4 percent to $12.