Ford Motor (NYSE:F) Chief Executive Officer Jim Farley believes the company has many lucrative opportunities it could utilize to maximize its profits. His leadership has significantly been focusing on the company’s auto-operations, trying to eliminate inefficiencies.
Farley sees an excellent opportunity if the company manages to cut down on the warranty-related repairs. According to the CEO, the business might save between $1 billion and $2 billion every year. Farley wants the company to become more competitive on cost and observes warranty as a significant opportunity. The electric vehicle’s upcoming wave is a new experience for all motor companies worldwide, and Farley believes it’s best to brace for the future.
Supply disruptions are a significant issue
He sees supply disruptions as a significant setback to businesses. He thinks it is best to plan for a future without such disruptions. He advises the US to channel funds and efforts to developing batteries to facilitate the fast-rising electric vehicle industry.
Supply disruptions aren’t new in most American auto factories and call for urgency in resolving matters. According to the Chief executive officer, disruptions result in shutdown in business operations, causing companies to lose money.
Farley promises that he will be one of the leaders engaging the government on the subject. According to him, government support in bringing-large scale battery production o the country will be a major boost to the country’s EV manufacturers.
The leader cites Taiwan’s case as an example, outlining that the US can’t afford to witnesses the same. According to the official, Taiwan experienced major disruptions, and the US needs to take lessons from the country.
Factory idlings have lately become quite common, and industry experts cast blame on computer chips shortages. The issue needs to be addressed as soon as possible because of its negative impact on most automotive companies. Ford and General Motors (NYSE:GM) might lose one-third of their automotive earnings this year if nothing changes.
Many companies focusing on cars and consumer electronics worldwide rely heavily on chips from the Taiwan semiconductor manufacturing company. Unfortunately, the business struggles to meet the strong demand.