Arab Times

Ford says outlook for its 2nd quarter is improving

-

Ford’s second-quarter outlook is improving, with large numbers of customers making reservatio­ns for four of its new vehicles.

Ford Motor Co. now anticipate­s its quarterly adjusted earnings before interest and taxes for the April through June quarter to top its expectatio­ns and be significan­tly better than the year-ago period.

Although there’s still uncertaint­y around semiconduc­tor supply, Ford is seeing improvemen­t in its automotive business due to lower-thanexpect­ed costs and favorable market factors. It’s also being helped by increased vehicle auction values.

CEO Jim Farley told investors at Deutsche Bank’s Global Auto Industry Conference on Thursday that the company is benefiting from lower costs overseas and in North America due to restructur­ing. It’s also seeing “pretty breathtaki­ng” prices for its vehicles with tight inventorie­s, and higher revenue from its credit arm, he said.

But he said Ford is still being hit harder than competitor­s by the global shortage of computer chips because it was more reliant on Renesas, a Japanese chip maker that had a fire at one of its factories in March. Even though the Renesas plant is restarting some production, he doesn’t see Ford returning to normal vehicle availabili­ty until sometime next year due in part to high demand.

Also, unlike competitor­s, Ford will not remove features such as fuel-saving stop-start technology in order to keep building vehicles with fewer chips, Farley said. (AP)

 ??  ?? In this file photo, an American flag flies over a Ford auto dealership, in Waukee, Iowa. (AP)
In this file photo, an American flag flies over a Ford auto dealership, in Waukee, Iowa. (AP)

Newspapers in English

Newspapers from Kuwait