Chip crisis continues Ford plans to suspend or cut production at eight factories next week

According to Reuters, a Spokesman for Ford Motor said on February 6 that the company plans to suspend or cut production at its eight plants in the United States, Mexico and Canada throughout the next week due to tight chip supply.

Ford also warned that a shortage of chips would lead to a decline in the company's car production this quarter. Ford shares slipped on Friday after the company reported lower-than-expected quarterly revenue and forecast a slower recovery in 2022 than rival GM.

Ford also said that it expects a significant increase in automobile production in the second half of the year.

It is reported that Ford Motor's full-year 2021 net income reached $17.9 billion and adjusted EBITDA was $10 billion, both of which achieved year-on-year growth. The company's fourth-quarter revenue was $37.7 billion, net income was $12.3 billion, and adjusted EBITDA was $2 billion, all higher than the same period in 2020.

John Lawler, Chief Financial Officer of Ford Motor Company, said the company expects adjusted EBITDA to be between $11.5 billion and $12.5 billion in 2022, up 15%-25% year-on-year, and will perform even stronger. The high end of the adjusted EBIT range will be able to achieve a profit margin of 8%, which will complete the company's target one year earlier than originally planned. Adjusted free cash flow for 2022 is expected to be between $5.5 billion and $6.5 billion.