Chip shortage hitting Ford production hard in Q2.

Driftwood

First Tremor on Methods!
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Ford expects to lose half of planned Q2 production from chip shortage
Apr. 28, 2021 4:35 PM ETFord Motor Company (F)By: Carl Surran, SA News Editor19 Comments
  • Ford (NYSE:F) -3.4% post-market after easily beating Q1 earnings estimates but lowering its full-year EBIT guidance due to the semiconductor shortage plaguing the auto industry.
  • Ford says it expects to lose ~50% of planned Q2 production due to the shortage, up from 17% in Q1, but the problem should bottom out during the current quarter, with improvement through the rest of the year.
  • The company anticipates the flow of semiconductors from its Japanese supplier to resume by the end of Q2, but says the broader global semiconductor shortage may not be fully resolved until 2022.
  • Ford assumes that it will lose 10% of planned H2 production, or ~1.1M units of production this year to the semiconductor shortage.
  • For the full year, Ford cuts its forecast for adjusted EBIT $5.5B-$6.5B from $8B-$9B previously, well below $6.81B analyst consensus estimate, and forecasts the semiconductor shortage will cost $2.5B.
 
I got curious as to why there is a chip shortage and the best explanation I saw was that everyone bought new electronic devices during the lockdowns and used up all the supply so now they are trying to catch up and dont have the manufacturing capacity.

Anyway, sounds like they are a year or two from getting things back to normal. These pics of parked trucks at ky speedway is eye opening. You think quality is spotty now how about a partially built truck sitting around waiting for parts then put back into manufacturing or handbuilt in some unknown state. Its gonna be a mess...

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Ford expects to lose half of planned Q2 production from chip shortage
Apr. 28, 2021 4:35 PM ETFord Motor Company (F)By: Carl Surran, SA News Editor19 Comments
  • Ford (NYSE:F) -3.4% post-market after easily beating Q1 earnings estimates but lowering its full-year EBIT guidance due to the semiconductor shortage plaguing the auto industry.
  • Ford says it expects to lose ~50% of planned Q2 production due to the shortage, up from 17% in Q1, but the problem should bottom out during the current quarter, with improvement through the rest of the year.
  • The company anticipates the flow of semiconductors from its Japanese supplier to resume by the end of Q2, but says the broader global semiconductor shortage may not be fully resolved until 2022.
  • Ford assumes that it will lose 10% of planned H2 production, or ~1.1M units of production this year to the semiconductor shortage.
  • For the full year, Ford cuts its forecast for adjusted EBIT $5.5B-$6.5B from $8B-$9B previously, well below $6.81B analyst consensus estimate, and forecasts the semiconductor shortage will cost $2.5B.
 
I took one out of dealer stock 200 miles away but it was close to what i wanted. I did order one with no obligation 3 weeks ago was supposed to have a vin 2 and a half weeks ago, still don’t have one. Even if it’s close to what you want I would take it now. If you wanted a 6.7 diesel you would be let down with the 7.3.
 
I got curious as to why there is a chip shortage and the best explanation I saw was that everyone bought new electronic devices during the lockdowns and used up all the supply so now they are trying to catch up and dont have the manufacturing capacity.

Anyway, sounds like they are a year or two from getting things back to normal. These pics of parked trucks at ky speedway is eye opening. You think quality is spotty now how about a partially built truck sitting around waiting for parts then put back into manufacturing or handbuilt in some unknown state. Its gonna be a mess...

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Yea what will be the actual build date on these? The chip shortage has been going on for the last 3 years. My company has been struggling for the last 3 for these similar chips. We are now building power supplies and power components that go into Ford, Mazda, Chevy, Ferrari, Land Rover and Volvo. They may be going into vehicles to just sit like this. Scary!!
 
I got curious as to why there is a chip shortage and the best explanation I saw was that everyone bought new electronic devices during the lockdowns and used up all the supply so now they are trying to catch up and dont have the manufacturing capacity.
TSMC (Taiwan Semiconductor) is the biggest chip manufacturer in the world and they have been hit hard with production shortfalls because of reduced personnel capacity due to the pandemic. With production quantity down to half or even a third of normal, it's hitting every industry not just vehicles. The ps5 and current gen graphics cards everyone wants, also hit. The new Samsung phone you want, also hit. TVs, smart refrigerators, etc. All hit.

Only one not as affected seems to be Apple, although TSMC does make some of their chips, just not as many.
 
My tremor was built over a week ago, now sitting (probably in the picture above....LOL) waiting for chips....I am opting to take an inbound unit that was built with no delays...
 
What to do?
There is an in-transit Tremor coming to dealer that I can put a deposit down on which is what I am looking for but white (i can live with) or put in an order in for a 22 but this chip shortage looks like it could add a lot of time...
1 dealer told me a 22 order would take till December and 1 dealer said could be as early as September (Canada)... Ahhhh.
 
What to do?
There is an in-transit Tremor coming to dealer that I can put a deposit down on which is what I am looking for but white (i can live with) or put in an order in for a 22 but this chip shortage looks like it could add a lot of time...
1 dealer told me a 22 order would take till December and 1 dealer said could be as early as September (Canada)... Ahhhh.
There were three 6.7 tremors within 500 miles I was looking at but not super serious because I hadn’t sold my current truck yet. One race red, one rapid red, and one grey(not sure which grey). All XLT’s which was my budget, the grey and race red were fully loaded XLT’s, . Finally decided to pull the trigger on the grey (I had talked to sales guy a few time and they weren’t backing off msrp), called two days after our last chat and he sold it. Decided I wouldn’t be able to live with the race red even though it was almost a lariat minus the leather and they came down a few thousand off msrp but told them thanks but no thanks. Called the Rapid Red sales guy and worked out a deal and sent deposit - it was missing upfitters and supplemental cab heater, two things I wanted but said I could live without as the only accessories I’ll add are pod lights and maybe a 20” light bar, the upfitters would have been sweet, but I can just run a few switches inside no big deal. After I sent deposit he said good thing I did because later someone else was ready to do the same. New tremors are popping up here and there but few and far between, especially XLT’s and lower lariat. I see lots of platinums out there, I assume because they’re $90,000 trucks.
Moral of story, if it’s close to what you want and you can ‘live’ with what’s missing or not exact - I’d say jump on it. You can always get a ‘22 or ‘23 in a few years and still be driving a kick ass truck now. I have absolutely zero regrets and love the rapid red.
 
TSMC (Taiwan Semiconductor) is the biggest chip manufacturer in the world and they have been hit hard with production shortfalls because of reduced personnel capacity due to the pandemic. With production quantity down to half or even a third of normal, it's hitting every industry not just vehicles. The ps5 and current gen graphics cards everyone wants, also hit. The new Samsung phone you want, also hit. TVs, smart refrigerators, etc. All hit.

Only one not as affected seems to be Apple, although TSMC does make some of their chips, just not as many.
I think that’s why apple was racing to get their own chips built last year. Most of their new products have their own now.
 
Will this impact trucks scheduled for build next month? Or rather, is there any way to tell how they are prioritizing the production cuts? My 21’ is scheduled for build the second week of May...
 
Will this impact trucks scheduled for build next month? Or rather, is there any way to tell how they are prioritizing the production cuts? My 21’ is scheduled for build the second week of May...
Mine too , may 12th to be exact. I'd be interested to see if pre sold trucks are prioritized over dealer stock for chips
 
Will this impact trucks scheduled for build next month? Or rather, is there any way to tell how they are prioritizing the production cuts? My 21’ is scheduled for build the second week of May...

I can’t come up with any logic that would suggest that a truck being started at any point since late March would get completed and delivered at any point in the near future.

As soon as they put those factories on pause the queue got deep and now we’re seeing more and more video evidence of that.

I cancelled my 2022 ordered and picked up a 2021 off a lot.

My bet was anything scheduled to be built in Q3 2020 would have a 9-12 month delivery window.

And since March the underlying circumstances have not changed to my knowledge. We’ll see.
 
TSMC (Taiwan Semiconductor) is the biggest chip manufacturer in the world and they have been hit hard with production shortfalls because of reduced personnel capacity due to the pandemic. With production quantity down to half or even a third of normal, it's hitting every industry not just vehicles. The ps5 and current gen graphics cards everyone wants, also hit. The new Samsung phone you want, also hit. TVs, smart refrigerators, etc. All hit.

Only one not as affected seems to be Apple, although TSMC does make some of their chips, just not as many.
I thought Taiwan had all but escaped the pandemic and was barely affected by it.
 
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