Ford has had a very strong first quarter. That is of course a nice boost, but due to the chip crisis there is a considerable production shortage in the rest of the year.
Ford closed the first quarter of 2021 with a profit of no less than $ 3.3 billion, equivalent to € 2.7 billion. That is the largest quarterly profit for Ford since 2011. A good performance, especially now that the car industry is recovering from the corona crisis and in the meantime a new crisis has emerged due to the chip shortage. Last year, Ford suffered a loss of € 1.65 billion in Q1. In Europe, Ford also posted a profit in the past quarter; 341 million dollars, converted to € 281 million. Last year, the brand was still loss-making here in the first quarter.
Still, it’s not all rose scent and moonshine for Ford. The effects of the chip crisis have so far been fairly limited, but a major dent in production can no longer be avoided in the second quarter. The Americans expect to produce no less than 50 percent fewer cars in Q2 than initially planned. In the second half of this year, the company is counting on a lost production of 10 percent due to the chip shortage.
Ford therefore warns that after this boost, more difficult times are to come. In total, it is counting on no less than 1.1 million fewer cars than planned for 2021. It is expected to depress profits by $ 2.5 billion. Ford does not expect the chip shortage to affect production until 2022. Despite this, the group is expecting a profit of 5.5 to 6.5 billion dollars for this year. However, it could have been a lot more.