DETROIT: Ford Motor said on Wednesday, while announcing the latest North America production cuts at seven assembly plants due to the global chip shortage, that it would provide an update on April 28 to the expected hit to its 2021 profit.
The US automaker previously said its operating profit this year would be reduced by US$1 billion to US$2.5 billion. The update to that forecast will be provided when Ford reports first-quarter results on April 28. A spokeswoman declined further comment.Advertisement Advertisement
US rival General Motors Co previously said its 2021 profit could be shaved by up to US$2 billion due to the chip shortage.
Earlier on Wednesday, GM Chief Financial Officer Paul Jacobson, speaking at a Bank of America conference, said he still felt comfortable with the company's 2021 profit forecast despite the chip shortage. GM said in February that, including the chip hit, it expected to earn US$4.50 to US$5.25 a share this year.
The chip shortage came as North American auto plants were shut for two months during the COVID-19 pandemic last year and chip orders were canceled, and as demand surged from the consumer electronics industry as people worked from home and played video games. That has now left carmakers competing for chips.
Semiconductors are used extensively in cars, including to monitor engine performance, manage steering or automatic windows, and in sensors used in parking and entertainment systems.Advertisement Advertisement |0|https://www.channelnewsasia.com/news/business/ford-to-provide-update-on-financial-impact-of-chip-shortage-next-month-14534278|1|https://cna-sg-res.cloudinary.com/image/upload/q_auto,f_auto/image/14534276/16x9/991/557/8a29af940529bc9d62dd97161a88026b/yj/file-photo--a-ford-logo-is-pictured-at-the-2019-frankfurt-motor-show-in-germany-1.jpg|2|www.channelnewsasia.com|E|