Ford is about to ship thousands of F-150s to dealers as it gets new supply of chips

[Mhubbardva1]

Remember also they took a big chance launching so many new vehicles in 1 year,so they needed to prioritize where as gm stopped the vette,camaro along with several other vehicles so the could build pickups and suvs Nissan has been impacted as well the big difference with ford was the factory that caught fire accounted for 30% of there chips and like I said before there are other parts that are in short supply…you can’t even get a video game console over here

Bottom line is Jim Farley is in way over his head. Single source supplier for Bronco hardtops? Deposited customers will have waited 3 years for these by the time they are actually delivered. Mavericks delivered in September? Right.

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[Mhubbardva1]

That's exactly what they are doing but it may have gotten too close. Model year has been extended for months to make numbers. Look at the option delay list, its months out for several popular options. Bottom line is Ford had taken customers for granted. Wall street doesn't like any of this.

 

[Antimatter Tremor]

I'm not gonna go on quoting anymore on this and turning it into a big argument for no reason. But I will say this. I see what's been going on at Ford, I know people who work at GM and Chrysler and hear what's going on from them. Plus many suppliers. Ford is not the only one who's been waiting on chips. I pass by Sterling Heights Assembly where they make Ram trucks everyday. Their shipping area has been packed with trucks for months. And they've been doing the same with Rams and Ford has with F-Series trucks (and other vehicles)

Jim Farley is NOT in over his heard. That's one of the most ridiculous things I've ever read.


And finally, Ford will not lose its #1 spot with the best selling vehicle.


And that's all I've have to say about that

 

[Mhubbardva1]

I'm not gonna go on quoting anymore on this and turning it into a big argument for no reason. But I will say this. I see what's been going on at Ford, I know people who work at GM and Chrysler and hear what's going on from them. Plus many suppliers. Ford is not the only one who's been waiting on chips. I pass by Sterling Heights Assembly where they make Ram trucks everyday. Their shipping area has been packed with trucks for months. And they've been doing the same with Rams and Ford has with F-Series trucks (and other vehicles)

Jim Farley is NOT in over his heard. That's one of the most ridiculous things I've ever read.


And finally, Ford will not lose its #1 spot with the best selling vehicle.


And that's all I've have to say about that

Ok, We will agree to disagree. Ford needed a wake up call and they will pull out the F150 record by the skin of their teeth. Bottom line for me is I have driven Ford products exclusively for over 40 years. My companies only buy and use Ford products. I bleed Ford blue. I can say the way Ford has handled this will cause me to shift away from them. I am painted in a corner, I need my personal truck NOW I ordered in January. Working with different levels of management within Ford has been less than impressive. There has been little or no extra effort in the customer satisfaction department. Luke warm effort. All lip service. Top priority promises with no follow trough. I am painted into a corner with that truck and will have to take it but I need to buy three more vehicles this year for my company and they will not be Fords.

In time you will see I am right about Jim Farley's abilities. Customer service is no longer a priority to Ford and it's team.

 

[Antimatter Tremor]

?

 

[bobstar]

Ok, We will agree to disagree. Ford needed a wake up call and they will pull out the F150 record by the skin of their teeth. Bottom line for me is I have driven Ford products exclusively for over 40 years. My companies only buy and use Ford products. I bleed Ford blue. I can say the way Ford has handled this will cause me to shift away from them. I am painted in a corner, I need my personal truck NOW I ordered in January. Working with different levels of management within Ford has been less than impressive. There has been little or no extra effort in the customer satisfaction department. Luke warm effort. All lip service. Top priority promises with no follow trough. I am painted into a corner with that truck and will have to take it but I need to buy three more vehicles this year for my company and they will not be Fords.

In time you will see I am right about Jim Farley's abilities. Customer service is no longer a priority to Ford and it's team.

Ok, We will agree to disagree. Ford needed a wake up call and they will pull out the F150 record by the skin of their teeth. Bottom line for me is I have driven Ford products exclusively for over 40 years. My companies only buy and use Ford products. I bleed Ford blue. I can say the way Ford has handled this will cause me to shift away from them. I am painted in a corner, I need my personal truck NOW I ordered in January. Working with different levels of management within Ford has been less than impressive. There has been little or no extra effort in the customer satisfaction department. Luke warm effort. All lip service. Top priority promises with no follow trough. I am painted into a corner with that truck and will have to take it but I need to buy three more vehicles this year for my company and they will not be Fords.

In time you will see I am right about Jim Farley's abilities. Customer service is no longer a priority to Ford and it's team.

100% agree piss poor Customer service, fire the guy, there needs to be accountability.

 

[Steve2352]

Not surprised, they had to have a come to Jesus with this mess eventually. I had figured about a month ago that they likely wouldn’t let these things sit much past July, looks like they’ll probably get a good majority of these trucks out of there by the end of the month if they’re really going to push as hard as they say they will.
It’ll be interesting to see if a bunch of people from the parked build weeks suddenly start seeing movement. Seems like they already started on them 2 weeks ago.

It’s also pretty telling things aren’t going very well when they won’t even release standard sales numbers in the reporting. They’re acting like Q2 just didn’t even happen and instead focusing on “first half” sales for everything.

My Lariat has been parked waiting for chips in Dearborn since first week of April and Learned this week that the truck shipped and will be at dealer by 25 July. Starting to finally seem real

 

[Madman]

KEY POINTS

• Ford’s June and second-quarter sales were below analyst expectations as a global shortage of semiconductor chips caused significant production cuts and inventory constraints.
• Ford sold 475,327 vehicles during the second quarter, a 9.6% increase from a year earlier when the coronavirus pandemic caused Americans to shelter in place
• For June, the automaker said Friday that its sales declined by 26.9%, including a roughly 30% drop in its F-Series pickups.
• 
  Listed by estimated "volume impact" by AutoForecast Solutions, the 10 most affected were all Ford, GM, or Stellantis products:
  • Ford F-series: 109,710.
  • Jeep Cherokee: 98,584.
  • Chevrolet Equinox: 81,833.
  • Chevrolet Malibu: 56,929.
  • Ford Explorer: 46,766.
  • Jeep Compass: 42,195.
  • Ford Edge: 37,521.
  • Ford Escape: 36,463.
  • 
    
    
  • Ford's June sales decline by 26.9% as company misses second-quarter expectations
    PUBLISHED FRI, JUL 2 2021 9:47 AM EDTUPDATED FRI, JUL 2 2021 12:33 PM EDT
    
    Michael Wayland
    @MIKEWAYLAND
    SHARE
    KEY POINTS
    • Ford's June and second-quarter sales were below analyst expectations as a global shortage of semiconductor chips caused significant production cuts and inventory constraints.
    • Ford sold 475,327 vehicles during the second quarter, a 9.6% increase from a year earlier when the coronavirus pandemic caused Americans to shelter in place
    • For June, the automaker said Friday that its sales declined by 26.9%, including a roughly 30% drop in its F-Series pickups.
    • 
      And I’ll tell you Ford’s numbers are fuzzy math. I would bet they have counted all the parked trucks as produced.

@Mhubbardva1 -

Some good data here. Thank you for sharing.

I am not an accountant but am pretty sure that Ford CANNOT count all the parked trucks as 'Sales'. Like any company, they can produce all the widgets they want but if they don't ship them, they can't be counted as the top-line Revenue as per GAAP.

Moreover, they can't count all of our 'Orders' until those trucks ship to customers. Ford can have some 'fuzzy math' internally (e.g. how they break-down the product mix or sales by model) but there are strict rules around reporting things like Corporate Revenue and Profit. If they did, they would be misleading investors. They'd be subject to an SEC investigation, like Lordestown.

 

[Drufus]

@Mhubbardva1 -

Some good data here. Thank you for sharing.

I am not an accountant but am pretty sure that Ford CANNOT count all the parked trucks as 'Sales'. Like any company, they can produce all the widgets they want but if they don't ship them, they can't be counted as the top-line Revenue as per GAAP.

Moreover, they can't count all of our 'Orders' until those trucks ship to customers. Ford can have some 'fuzzy math' internally (e.g. how they break-down the product mix or sales by model) but there are strict rules around reporting things like Corporate Revenue and Profit. If they did, they would be misleading investors. They'd be subject to an SEC investigation, like Lordestown.

They definitely cannot recognize the revenue on the parked trucks, or count them as sold. I have seen "production" figures, which I wonder if they are including those in. Or maybe they will wait until the chips are plugged in. THat's not a GAAP metric so its up to Ford to decide that one.

I wonder when Ford recognizes the revenue, is it when the dealer takes delivery or customer? I'm thinking the dealer. Probably depends on how the title and payment terms are written. I actually know someone who works for Ford in investor relations, maybe I'll ask!

 

[Mhubbardva1]

@Mhubbardva1 -

Some good data here. Thank you for sharing.

I am not an accountant but am pretty sure that Ford CANNOT count all the parked trucks as 'Sales'. Like any company, they can produce all the widgets they want but if they don't ship them, they can't be counted as the top-line Revenue as per GAAP.

Moreover, they can't count all of our 'Orders' until those trucks ship to customers. Ford can have some 'fuzzy math' internally (e.g. how they break-down the product mix or sales by model) but there are strict rules around reporting things like Corporate Revenue and Profit. If they did, they would be misleading investors. They'd be subject to an SEC investigation, like Lordestown.

I am with you but look at the numbers
US Total Units soles 2019 897,000
2020 787,000
Thru June 2021 362,000
Canada Total Units 2019 145,000
2020 138,000
Thru June 2021 30,000

160,000 were supposedly sold during the 2nd quarter when no chips were available. Dealer lots have been empty since late March. I am talking about major market dealers who typically hove over 200 F150's on the lot, they had 2 or three. The numbers don't add up. If Fords wants to finish the year even close to any of the last 20 years they will have to build, ship and deliver 85,000 trucks a month for the rest of the year. That has not happened a single time in the last 20 years. By creating this disgruntled group of loyal customers along with dealers adding 5-10K to the MSRP currently I don't see this happening.
https://www.goodcarbadcar.net/ford-f-series-sales-figures/

 

[Mhubbardva1]

They definitely cannot recognize the revenue on the parked trucks, or count them as sold. I have seen "production" figures, which I wonder if they are including those in. Or maybe they will wait until the chips are plugged in. THat's not a GAAP metric so its up to Ford to decide that one.

I wonder when Ford recognizes the revenue, is it when the dealer takes delivery or customer? I'm thinking the dealer. Probably depends on how the title and payment terms are written. I actually know someone who works for Ford in investor relations, maybe I'll ask!

I have always wondered that. My dealer is a family friend and has tried to explain it. The dollars hit him before he gets the vehicle on his "floor plan". I also know there is a lot of selling from one entity to another entity to create sales.

 

[RayRay]

@Mhubbardva1 -

Some good data here. Thank you for sharing.

I am not an accountant but am pretty sure that Ford CANNOT count all the parked trucks as 'Sales'. Like any company, they can produce all the widgets they want but if they don't ship them, they can't be counted as the top-line Revenue as per GAAP.

Moreover, they can't count all of our 'Orders' until those trucks ship to customers. Ford can have some 'fuzzy math' internally (e.g. how they break-down the product mix or sales by model) but there are strict rules around reporting things like Corporate Revenue and Profit. If they did, they would be misleading investors. They'd be subject to an SEC investigation, like Lordestown.

Well apparently they do.

 

[Drufus]

I was able to confirm that revenue is recognized when they are off the line. However, they are not getting any cash on these, so their cash flow metrics will be impacted by all these sitting around.

 

[JoeBlowFord]

Our Lariat was built in Dearborn on May 9th. It was supposed to be shipped to Granger about 1 month ago. The dealer indicated that it was not waiting for any integrated circuits. Apparently our truck is sitting in Kansas City waiting for an available transport. A shortage of truck drivers is an additional burden on top of the IC shortage and is impacting a number of industries.

@bouvier What date did your truck ship from Dearborn?

 

[bouvier]

Hey Joe. I can't say for sure when our truck shipped from Dogbone. However, when I last heard from the dealer (6/8) it was apparently in Kansas City. Too bad I can't just go there and pick it up.

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