Ford is cutting down production at eight factories starting Feb. 7 as the company recently warned that a shortage of computer chips would cause a fall in vehicle volumes for the first quarter of 2022.
Ford representatives did not respond to a request for comment by press time.
The Q4 2021 results showed a revenue of $37.7 billion, net income of $12.3 billion, and adjusted earnings before interest and taxes of $2 billion. The manufacturer stressed the importance of electric vehicles in the company’s lineup moving forward, claiming the number two position in the country for the category.
“We’re also proud that customers see how Ford is taking EVs mainstream, and have already ordered or reserved more than 275,000 all-electric Mustang Mach-E SUVs, F-150 Lightning pickups, and E-Transit commercial vehicles—and we’re breaking constraints to deliver every one of them as fast as we can,” said President and CEO Jim Farley in the report.
In 2021, Ford sold 3.94 million wholesale vehicle units in the United States, down by 5.8 percent compared to 2020’s 4.19 million, while the company’s market share decreased from 5.8 percent to 5.1 percent year-on-year. The shortage of semiconductors played a big role in the production decline. The chip shortage has forced the company to cut off production for even its high-demand models like the F-150, Bronco, and Mach-E.
Despite projecting a decline in vehicle volumes for Q1, Ford predicts the volume to increase quite significantly in the second half of the year, as it sees the global semiconductor supply situation improving by this time.
Other car brands have also seen lower sales for the opening month of the year, with big names like Honda, Mazda, and Volvo suffering double-digit dips. Toyota and Subaru also registered lower sales. Brands that saw sales increase in January include Hyundai and Genesis.