Chip shortage continues affecting automakers globally, and Ford Motor (NYSE: F) hasn’t been spared either. This company cites the same concern over the substantial drop in its sales. The company says it lost by 26.9%, terming the performance rather disappointing.
Analysts expected it to perform well, but the semi-conductor shortages dragged the company behind. Most companies within the auto-manufacturing segment are in most cases compelled to cut down on production whenever they experience semi-conductor chips shortages. Ford mentions semi-conductor shortages and inventory constraints as part of what affected its sales volumes.
It was over the second quarter that Ford announced the sale of 475,327 vehicles. It applauded the performance, outlining a 9.6% increase from what it achieved a year earlier. The company understood its previous performance because the coronavirus outbreak had hit most businesses worldwide. It recalls how it had to close down auto dealerships temporarily during the period.
Ford’s sales projections
Edmunds was the first to cite its projection on Ford’s sales, and it anticipated a 10.5% rise. The other one making projections happened to be Cox Automotive, and this one forecasted a 20.5% rise.
The two projections on Ford’s performance hit a hard rock following the company announcing undesirable June results. It was a decline in sales, playing at about 26.9%. It also mentioned how matters looked in its F-Series pickups, and that was a 26.9% decline in sales.
It hasn’t been long since Ford projected it would lose half of its production in the second quarter. It added that the semi-conductor shortage continued to be a persistent matter of concern to its manufacturing activities. At the start of this week, it spoke about reducing its production throughout July, citing semi-conductor shortage.