Sales of Ford Motor Company (NYSE:F) in April plunged by 10.5% from the same month last year as losses tail off. For more than a year, the automaker and the whole car manufacturing industry have been grappling with chip shortages and supply chain constraints.
Ford’s Sales Plunge
As reported by CNBC, the semiconductor crisis has affected Ford’s monthly sales in the U.S. by 20% in February and March.
Should investors adjust their portfolios in response to what is likely to be a series of interest rate hikes?
At the end of 2020, Chase Coleman’s Tiger Global was flying high. The hedge fund reported a 48% gain that year, as its bets on high-flying technology stocks paid off. Analysts argued that this performance had been years in the making, ever since Coleman set out on his own. Years in the making Coleman trained Read More
Andrew Frick, Ford vice president of sales, distribution, and trucks, said in a statement: “While industry semiconductor chip shortages persist, improved inventory flow in April delivered a significant share gain of 1 percentage point over a year ago with Ford outperforming the industry.”
In order to meet consumer expectations and to protect its more in-demand products, Ford has prioritized chips for the Mustang Mach-E crossover, whose sales this year nearly doubled from the same month in 2021.
While sales of recently-introduced models such as the Bronco SUV and the Maverick small pick-up truck have improved since March, sales of key models such as the F-Series pick ups —specifically, the F-150— are still flat.
CNBC reports that sales of said models were down by 22% last month, edging them to a 30% plunge for the year.
“F-Series sales did increase by 15% compared with March, signaling improved production and supplies.”
As the company is shifting its focus toward electric vehicles (EVs), the company also announced it was cutting 580 salaried and contract employees on the U.S., and said: “We continue to align staffing around the critical skills needed to deliver our products, services, and the Ford+ plan.”
“As part of the ongoing management of our business, we will continue to align our staffing to meet our future business needs and plans.”
As reported by CNBC, Ford had 186,769 employees globally as of 2021, with 90,873, or 48.7%, hourly and salaried workers stationed in the U.S.
Image Credit: Pexels; Thank you
Published First on ValueWalk. Read Here.
The post FORD’S APRIL SALES DROPPED BY 10.5% FROM A YEAR AGO appeared first on ReadWrite.