Ford 'confident' car prices, chip shortage will ease this year
Ford missed earnings caused by omicron, semiconductor shortage, CFO says
Ford’s Chief Financial Officer John Lawler gave his prediction for when the car market’s high prices fueled by the microchip shortage will let off the brakes.
"As we see us move through the second half of 2022, we see the chip crisis easing," Lawler said in an exclusive interview on "Mornings with Maria" Friday.
"That's why we're confident in our volumes in 2022 being up about 10 to 15%," the CFO continued.
In response to Ford’s disappointing quarter four earnings, Lawler put blame on omicron and semiconductor supply disruptions.
FORD SHARES SKID DESPITE A BULLISH 2022 OUTLOOK
"With the disruption we saw from COVID with some of our suppliers, the chip disruption continuing, we just weren't able to reach the higher volumes that some were expecting," Lawler told FOX Business’ Maria Bartiromo.
|F||FORD MOTOR CO.||12.93||+0.34||+2.70%|
But as microchip production comes back online, automakers can deliver those higher volumes again, Lawler explained. And as a result of more supply, car prices could return to normal.
"We're seeing inflation come through our business, in general, this year," Lawler said.
Ford recently announced it would allocate $20 billion in expanding its electric vehicle market, which the CFO noted has "significant" growth opportunities.
"We're moving into a much higher-tech product with a distributed compute across the vehicle," Lawler said, "and the strength of our balance sheet is really good for us to maximize the potential for our business as we move into the future."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Lawler remained confident that Ford’s liquidity of more than $50 billion gives the company "optionality" of its cash positions.
"It gives us fluidity in our capital allocation to the areas of growth that we need to," he said.