The Mustang Mach-E is Ford’s first new all-electric vehicle with a $ 11 billion investment plan for electric vehicles by 2022.
Michael Wayland | CNBC
Ford motorThe company said on Wednesday that consumer demand for new cars had not yet fallen, but rising commodity prices wiped out initially expected profits on the electric Mustang Mach-E.
Ford CFO John Lawler told Deutsche Bank at a conference that demand for new Ford and Lincoln continues to outpace supply and a global shortage of semiconductor chips continues. Therefore, inflation.
In most cases, these price increases maintain Ford’s profit margin, Roller said. However, the price hike was not enough to offset the impact of the rising cost on the company’s Electric Mustang Mach-E.
The cost of this model has increased significantly due to the significant increase in battery material costs. He said the Mach-E was profitable when it first launched in late 2020, but that’s no longer true.
Despite bright reports on demand, Roller pointed out new signs that consumers may have reached inflation limits. Ford Credit, the company’s funding arm, has seen an increase in “delinquency” or late payments.
Laura said Ford took the possibility of a recession in the United States seriously, and the company modeled some possible scenarios for the recession.
Still, Ford and the broader automotive industry are in a different position than the past recession, where companies usually held high inventories and increased discounts that eroded margins, Laura said.
“I don’t have it today,” Laura said. “We rely heavily on inventory. We have over 300,000 important order banks …. As an industry and as a company, we are heading for this. [possible recession] We are in a very different position than before. “
Correction: This story has been updated to remove the incorrect number of cost increases associated with building a Ford Mustang Mach-E. Ford CFO John Lawler did not provide that increasing number.