Ford Motor’s sales jump as supply chain issues improve

Their F-Series pickups increased up to 55,000 units, including 1,336 units of its electric F-150 Lightning. So far, this year, sales of F-Series pickups are up 15%.

However, EV sales still only represent 2.9% of the automaker’s sales through February.

Then again, on an industry level, Ford’s February sales outpaced other car makers who reported monthly sales. Toyota Motor’s sales last month were down by 8.5% compared with a year earlier, while Hyundai-Kia’s sales increased by 16.2%.

What’s giving automakers a hard time?

The industry as a whole also continues to battle supply chain and production issues.

Ford earlier this month even stopped production of F-150 Lightning electric pickups as it struggles with the transition to electric vehicles and a battery fire.

This can possibly be attributed to the fact that these companies don’t have the same supplier relationships as their legacy competitors as a vehicle that has thousands of components has hundreds of suppliers - and it takes only one part from one supplier to stop the line, says Rivian CEO RJ Scaringe in the Q3 earnings call.

The supply chain should be more consistent this year but “We do anticipate that interest rates will continue to climb for the balance of the year, and hopefully that doesn’t tip us into a recession.” says Hyundai Motor North America CEO Randy Parker.

Source: CNBC