Ford is everywhere now, thanks to an ever-expanding lineup of new cars. With the successful Ford Mustang Mach-E electric SUV and the F-150 Lightning truck, how did the brand lose $3.1 billion in the first quarter of this year? Supply chain problems, semiconductor chip shortages, and mostly just old supply and demand.
Ford Mustang Mach-E and F-150 Lightning have been a success
Everywhere you look now, Ford trucks, SUVs, and cars are everywhere. With the Ford Mustang Mach-E winning awards left and right (Including the MotorBiscuit EV of the Year award) and the successful launch of the Lightning truck, Ford is on fire. However, Ford posted Q1 2022 figures and confirmed a net loss of $3.1 billion. How did it happen?
Ford attributed this loss “to a mark-to-market loss of $5.4 billion on the company’s investment in Rivian.” Ford’s stake in Rivian fell from $10.6 Billion at the end of 2021 to $5.1 billion at the end of Q1. Additionally, Ford said that more expensive products, lower vehicle shipments, and lower sales of trucks and SUVs were also linked to losses.
“This product appeal – Bronco, Bronco Sport, Maverick, Mustang Mach-E, E-Transit
and now the F-150 Lightning – undeniably.”Jim Farley | Ford CEO
Farley went on to say that the popularity of the lineup has translated into order, which is the goal. Ford wants to provide customers with a “great experience” to keep up with its popularity. Farley went on to say that they are trying to increase production and manufacturing as a result. Turning orders into actual Mustang Mach-E deliveries quickly was the goal.
Ford Mustang Mach-E and F-150 Lightning production slow
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For the first quarter of 2022, Ford reported revenue of $34.5 billion, down nine percent from 2021. For the most part, the automaker blamed shortages of semiconductor chips and COVID-19 supply chain issues for the losses. Because of this, Ford was unable to meet customer demands despite strong interest.
Either way, Ford shipped nearly 970,000 vehicles in the first quarter. It anticipates a shortage of semiconductor chips even in the next few months, hoping for “full-year wholesale volume of vehicles to increase 10% to 15% from 2021.” In addition, the launch of the new Ford+ plan will add to the growth.
It said the conflict in Ukraine had complicated supply chain issues but to a limited extent. However, if it persists, “the situation in Eastern Europe could exacerbate broader supply problems over time.”
The EV market is getting busier every day
According to the Kelley Blue Book, the Ford Mustang Mach-E was in third place for electric vehicle sales in Q1. In first and second place, the Tesla Model Y electric SUV and Model 3 sedan accounted for 68% of sales. 46,707 Model 3s moved from dealer lots while Ford sold 6,734 Mach-E EVs. That’s a big difference between second and third place.
However, with 32 different electric vehicle models on the market, Tesla’s grip is getting weaker. Ford hopes to produce and ship more Mach-Es than ever before in Q2 2022. As it stands now, the 2022 Ford Mustang Mach-E is sold out. Ford said, “Due to high demand, this year’s model is no longer available for retail order. Limited supplies may be available at select dealers.”
Ford has big plans for Q2 and looks set to do everything in its power to keep making SUVs and electric trucks as fast as possible. If you want to get in on the Ford Mustang Mach-E action, be sure to make a reservation when booking for the Mach-E 2023 opens.
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