Chip supplies are tight and Ford plans to suspend or cut production at eight plants next week

2022-05-10 0 By

Ford Motor Co plans to suspend or reduce production at eight of its plants in the United States, Mexico and Canada throughout next week because of chip supply constraints, a spokesman said.Ford had also warned that the chip shortage would cause it to produce fewer vehicles this quarter.Ford shares slipped on Friday after the company reported lower-than-expected quarterly revenue and forecast a slower recovery in 2022 vehicle production than rival General Motors.Ford also said it expected a significant increase in vehicle production in the second half.Ford motor reported annual net revenue of $17.9 billion in 2021 and adjusted EBIT of $10 billion, both of which achieved year-on-year growth.Q4 revenue was $37.7 billion, net income was $12.3 billion, and adjusted EBIT was $2 billion, both higher than the same period in 2020.Ford Motor Co. ‘s CHIEF financial Officer John Lawler said the company expects a stronger 2022 adjusted EBIT of $11.5 billion to $12.5 billion, up 15% to 25% from a year earlier.The high end of the adjusted EBIT range will achieve an 8 per cent margin, which will achieve the company’s target one year ahead of schedule.Adjusted free cash flow for 2022 is expected to be in the range of $5.5 billion to $6.5 billion.(Proofreading/Daily News)