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Ford Sees $2.5 Billion Chip Shortage Cost, Lowers Outlook
- Automaker expects to lose about 50% of second quarter output
- Company’s shares decline 3.9% in Thursday premarket trading
Photographer: David Paul Morris/Bloomberg
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Ford Motor Co. reduced its full-year forecast due to a debilitating computer-chip shortage that has crimped vehicle production, a crisis the automaker now sees extending into next year.
A global shortfall of critically needed semiconductors has forced the entire automotive industry to cut output, leaving thin inventories on dealer lots just as consumers emerge from Covid-19 lockdowns. Ford expects a $2.5 billion hit to earnings due to scarce chip supplies, which it previously characterized as a worst case scenario.