Straight from the horse's mouth- Ford CEO Jim Farley

[Watchman]

Kind of says it all folks!

"We’re still in the teeth of it," Farley said. "I think this year will be very challenging for semiconductor availability. We’re maximizing production in our most profitable vehicles. That’s helping offset the loss in production, but it’s a very persistent problem."

Must read:

https://www.foxbusiness.com/politics/ford-ceo-on-white-house-mtg-ev-tax-credits

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[JASmith]

Well, they have to say that, but fact is that Ford and top Ford brass haven't made profits like this thanks to the "insert XYZ shortage" in decades.

High production low-profit price wars with other manufacturers was a far less profitable business model than the current low production high-profit one, and they aren't going to be working hard to "fix" things back to the way they were when they had to hire more workers and give you huge discounts off MSRP to move the inventory. This isn't really a surprise, as other industries have been caught and heavily fined for intentionally reducing productivity with secret collusion in the past (LCDs suddenly became so much cheaper for example because the three companies that manufactured almost all of them were convicted of price fixing and intentionally keeping production low), so while they may not have manufactured this crisis with a conspiracy, they sure as heck will be happy to keep things like this as long as possible.

Here's a graphic from C&D showing how consumers are suffering:

 

[thevol]

So youre saying my XL mav on order will not be getting built anytime soon, if ever...

 

[DJF]

And their most profitable vehicles are not the Maverick of any trim/options. F-series trucks are what make them the most profit.

 

[Old Ranchero]

it's well known in the industry USED car sales have always been the big profit maker at dealers.

 

[Lone Star Proud]

I wonder if that explains all the Lariats with luxury packages being built these past two weeks. They are producing the trucks that give them the most profit per vehicle.

 

[JASmith]

I wonder if that explains all the Lariats with luxury packages being built these past two weeks. They are producing the trucks that give them the most profit per vehicle.

That combo has also seen the largest price increase. I believe the Lariat went up almost four hundred and luxury package about the same increase, another couple hundred w/ a sunroof.

 

[MetalThunder]

For someone who ordered a slightly above base model - This is discouraging - as far as it seems picking what I wanted (could afford) put me in the back of the line because it won't make AS MUCH profit , at least that is the vibe that article puts out.

Here to tell you if that is the modus operandi - Then Happy Customers isn't exactly the goal - nor is it being well balanced with statements like that.

 

[My1stFord]

I didn't read the article, only the excerpt but if like to think this refers to dealer inventory and not ordered vehicles. Any thoughts?

 

[WasChops]

Kind of says it all folks!

"We’re still in the teeth of it," Farley said. "I think this year will be very challenging for semiconductor availability. We’re maximizing production in our most profitable vehicles. That’s helping offset the loss in production, but it’s a very persistent problem."

Must read:

https://www.foxbusiness.com/politics/ford-ceo-on-white-house-mtg-ev-tax-credits

NO he is not a "neigh sayer"!! OMG LOL!!!

 

[FlyingScot]

And their most profitable vehicles are not the Maverick of any trim/options. F-series trucks are what make them the most profit.

Not necessarily. They are built out of different plants, different power plants, transmissions, etc. Maverick is “in addition…” BUT - no doubt within the Escape/Bronco/Maverick production where overlap yes they will be prioritizing for profit - least that is my take on the comments.

 

[FakeCowboy]

So youre saying my XL mav on order will not be getting built anytime soon, if ever...

Not true, ordered an XL Maverick on 1/5 and received a production date last week. His statement is more to appease stock holders than anything else and I believe Ford is pumping out whatever it can based on available parts/materials. I think it more depends on your dealer's allocation and how many orders they have in front of yours and if there are constraints on any of the specific things you optioned on your truck like spray in bed liner, etc.

 

[FakeCowboy]

For someone who ordered a slightly above base model - This is discouraging - as far as it seems picking what I wanted (could afford) put me in the back of the line because it won't make AS MUCH profit , at least that is the vibe that article puts out.

Here to tell you if that is the modus operandi - Then Happy Customers isn't exactly the goal - nor is it being well balanced with statements like that.

I think this is a pretty short sighted statement, Ford's obligation is to the stock holders since they are a public company, not necessarily the customer. I'm sure if you owned a company you would do whatever is better for the longevity and profitability of your company primary to trying to keep EVERY customer happy. Ford is going to figure out how to be most profitable while trying to keep as many customers happy as possible but what do you think matters more to them? Keeping the customer who order a 70k F-150 happy or a customer who ordered a 26k Maverick happy?

 

[Automate]

The other side to the story is that those "most profitable" vehicles like the Lariat Lux have lots of electronics and corresponding chips that are in short supply. There have been times when those short supplies have forced Ford to produce more XL and XLTs than Lariat Lux and First Editions.

 

[ITSATRUCK]

All auto manufacturers are doing this right now. Still building the lower profit vehicles but if needed throttling there production to keep there most profitable lines running non stop.

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