Sponsored

Niterider

Well-known member
First Name
Shawn
Joined
Mar 1, 2021
Threads
2
Messages
140
Reaction score
214
Location
Indiana
Vehicles
2021 F-150
Occupation
factory worker
Heck, if Ford would at least notify us that our trucks have been finally completed and that they are now just waiting on transport...I'm betting that several of us would make that trip and drive them back home without much hesitation.

Ford, if you are listening, I personally could also be there in under six hours. (Per Google maps)
Sponsored

 

66F100Again

Well-known member
First Name
Bill
Joined
Mar 7, 2021
Threads
12
Messages
110
Reaction score
131
Location
Massachusetts
Vehicles
'66 F100, '11 Mustang GT, '21 F150 Lariat
Another article here: https://fordauthority.com/2021/07/f...epares-to-ship-thousands-of-f-series-pickups/

Contents:


It’s no secret that Ford has been reeling from the semiconductor chip shortage in recent months, losing hundreds of thousands of units of production in the process. Despite its best efforts to disrupt the production of key models as little as possible, even the automaker’s cash cow offerings – the Ford F-150 and Ford Super Duty – have faced numerous production issues, with unfinished models being stored around Detroit and Kentucky awaiting chips. Now, however, the Detroit Free Press is reporting that Ford has received a new batch of chips that will allow it to ship thousands of Ford F-Series pickups to eager customers.

“We’re working to get chips into F-Series pickups and get them out to dealers,” Erich Merkle, U.S. sales analyst at Ford, told the Free Press. “That’s our first priority. We’ll see our inventories improve. It’ll take time but stock will gradually start to improve the second half of the year. Merkle added that the automaker’s inventory is at “record lows,” which “is having a near-term impact on our sales.”

As Ford Authority reported recently, Ford doesn’t expect dealers to receive “meaningful” amounts of inventory until August, though Merkle noted that inventory levels may not return to normal until 2022. These shortages have had a major impact on the automaker’s sales, which decreased 27 percent in June, as Ford Authority reported earlier today.

F-Series sales dipped nearly 30 percent in June, however, the automaker still managed to sell 362,032 pickups on record turn rates in the first half of the year, which is 48,964 more than its second-place competitor. That total also represents a 1.5 percent decrease over F-Series sales in the first half of 2020.

Regardless, many in the industry, including Ford CEO Jim Farley, expect the semiconductor chip shortage to begin to ease up this month and recover fully by the end of 2021, which is good news for both automakers and car shoppers alike.

We’ll have more on the state of Ford production soon, so be sure and subscribe to Ford Authority for the latest Ford F-Series news, Ford Super Duty news, Ford F-150 news, and continuous Ford news coverage.
Another version of the story includes this comment.
In an email to Motor1.com, a Ford spokesperson said the automaker's plan was for F-Series production to improve through the second half of the year while also delivering current trucks that are parked and waiting for semiconductor chips, which should happen by the end of October. Ford isn't talking about how many built trucks are waiting for chips, but reports and rumors suggest it's in the tens of thousands.
My February ordered, April partially-built truck has been waiting for missing chips.
Order tracker still says 10/31 for ETA; I was hoping Ford was now prioritizing finishing the partially built trucks, but now I'm not so sure based on the comment about "...end of October".
 

Mhubbardva1

Well-known member
First Name
Michael
Joined
May 20, 2021
Threads
4
Messages
227
Reaction score
163
Location
Fairfax VA
Vehicles
F150 2016
Heck, if Ford would at least notify us that our trucks have been finally completed and that they are now just waiting on transport...I'm betting that several of us would make that trip and drive them back home without much hesitation.

Ford, if you are listening, I personally could also be there in under six hours. (Per Google maps)
My dealer friend said Ford used to allow pick ups at the depot. They will not any longer. My dealer said he gladly would send a porter to pick up one of mine.
 

Mhubbardva1

Well-known member
First Name
Michael
Joined
May 20, 2021
Threads
4
Messages
227
Reaction score
163
Location
Fairfax VA
Vehicles
F150 2016
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.
Yeah, that would be the "fuzzy Math". tens of thousands of the trucks counted in the first quarter are parked in several parking lots.
 

F-150 Prius

Well-known member
First Name
Adam
Joined
May 12, 2021
Threads
16
Messages
530
Reaction score
522
Location
Silicon Valley
Vehicles
2021 F-150 Platinum PowerBoost FX-4 6½
Occupation
Software Algorithms
Check the build date. Unless you have a business need, you don't want a half built truck that just sat outside for months till it was hand finished somewhere in a warehouse storage lot and put on a train carriage as quickly as possible. At least inspect carefully for quality and things like corrosion and paint condition.
My truck was theoretically built last week and arrives in 2-3 weeks. Much as I'm keen to take delivery, I'll stick my with my "old" F-150 if the "new" one looks like it has just spent 4 months outside waiting for a brain implant.
 

Sponsored

Madman

Well-known member
First Name
Kevin
Joined
Aug 24, 2020
Threads
3
Messages
400
Reaction score
425
Location
Boston, MA
Vehicles
3 Ford Explorers
Occupation
Engineer
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/
I like that you show hard data. But then you show anecdotal information and link to two to reach your conclusion. Respectfully, that seems like a stretch. Of course there has been a chip shortage but it wasn't zero. We know for a fact that Ford did sell (deliver) thousands of vehicles in Q2 - even if far fewer than what would normally result from demand. (By way of anecdote, my truck was built in May and delivered within 2 weeks.)

My only point here is that there is a distinction between the strict SEC/GAAP rules used for a company's reporting (Revenue and Profit) in 10K's and the other information that the reporting company includes (production #'s, product mix, et al.) We can and should have confidence in the data being presented to investors.
 

Madman

Well-known member
First Name
Kevin
Joined
Aug 24, 2020
Threads
3
Messages
400
Reaction score
425
Location
Boston, MA
Vehicles
3 Ford Explorers
Occupation
Engineer
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.
@Drufus -

I am pretty sure that Revenue is recognized when a truck leaves the shipping dock for a Dealership, pushing product into the Channel. That would be pretty normal, at least from my personal experience in the tech industry. (That can, of course, be abused by unscrupulous companies who stuff the channel with unwanted product but no one is alleging that's the case here.)

I would be very interested in learning what you find out! Thanks.
 

Madman

Well-known member
First Name
Kevin
Joined
Aug 24, 2020
Threads
3
Messages
400
Reaction score
425
Location
Boston, MA
Vehicles
3 Ford Explorers
Occupation
Engineer
Check the build date. Unless you have a business need, you don't want a half built truck that just sat outside for months till it was hand finished somewhere in a warehouse storage lot and put on a train carriage as quickly as possible. At least inspect carefully for quality and things like corrosion and paint condition.
My truck was theoretically built last week and arrives in 2-3 weeks. Much as I'm keen to take delivery, I'll stick my with my "old" F-150 if the "new" one looks like it has just spent 4 months outside waiting for a brain implant.
@F-150 Prius -
I hear you. I had ordered mine back on 1/2. It was delayed twice but finally built the week of 4/9 and sent for the spray-in liner the week of 4/16. Then it was moved to a lot in Dearborn, awaiting chip for the rear camera. Delivery was moved a few times - finally to Oct 31st. This happened to many Forum members.

Quick math - my truck was expected to sit outdoors for 9 months! Rusting unabated, exposing the paint and leather to heat and UV's, and collecting water marks on top of water marks. No thank you. So I cancelled my order and searched for a similar build through dealerships. Ultimately I found one 800+ miles away which had been built less than 2 weeks earlier and was in-transit. Perfect paint and almost zero rust. It's something you may want to consider.
 

Madman

Well-known member
First Name
Kevin
Joined
Aug 24, 2020
Threads
3
Messages
400
Reaction score
425
Location
Boston, MA
Vehicles
3 Ford Explorers
Occupation
Engineer
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.
@Drufus -

'Not to sound disagreeable but I think you and the deservedly revered Pioneer may be mistaken. I just looked up Ford's most recent 10K filing to the SEC and their statement is as I had suspected, that they recognize Revenue at shipment.

From Page 6:

"A majority of our sales revenue continues to be recognized when products are shipped from our manufacturing facilities. For certain vehicle sales where revenue was previously deferred, such as vehicles subject to a guaranteed resale value recognized as a lease and transactions in which a Ford-owned entity delivered vehicles, we now recognize revenue when vehicles are shipped in accordance with the new revenue standard."

https://sec.report/Document/0000037996-17-000068/f0630201710-q.htm
 

Drufus

Well-known member
Joined
Apr 26, 2021
Threads
3
Messages
81
Reaction score
74
Location
Connecticut
Vehicles
Lead Foot Lariat
@Drufus -

'Not to sound disagreeable but I think you and the deservedly revered Pioneer may be mistaken. I just looked up Ford's most recent 10K filing to the SEC and their statement is as I had suspected, that they recognize Revenue at shipment.

From Page 6:

"A majority of our sales revenue continues to be recognized when products are shipped from our manufacturing facilities. For certain vehicle sales where revenue was previously deferred, such as vehicles subject to a guaranteed resale value recognized as a lease and transactions in which a Ford-owned entity delivered vehicles, we now recognize revenue when vehicles are shipped in accordance with the new revenue standard."

https://sec.report/Document/0000037996-17-000068/f0630201710-q.htm

I got this info from someone I know that works in finance at Ford corporate.
 

Sponsored


succeed23

Well-known member
Joined
Apr 23, 2021
Threads
3
Messages
361
Reaction score
369
Location
Florida
Vehicles
2021 F150 Lariat
I love the respectful debates going on, gents. I'm actually shocked some troll hasn't tried to increase the temperature of the debates lol.

Anyways, I think we all understand the chip shortage has affected Ford and other companies across multiple industries/sectors. What I'm interested in knowing is how bad Ford did compared to their competitors. Did GM, Stellantis, and other car companies come up with a better plan to deal with the chip shortage? Are these companies actually communicating with their partners (the dealers)? Do these companies actually have a process to put chips in trucks because none of us have been able to figure out why there are folks that have ordered trucks LAST YEAR that still haven't received their trucks.
 

Madman

Well-known member
First Name
Kevin
Joined
Aug 24, 2020
Threads
3
Messages
400
Reaction score
425
Location
Boston, MA
Vehicles
3 Ford Explorers
Occupation
Engineer
I got this info from someone I know that works in finance at Ford corporate.
Perhaps he was talking about the Deferred Revenue account, that the Ford 10K referenced?

In my (admittedly limited) experience, that's used sometimes when a company has essentially already sold the item but it is not 100% complete, because it is not fully supported or physically complete, yet the company takes payment for it. Per the SEC rules, the company cannot recognize the revenue until the deal is made whole.
 

Drufus

Well-known member
Joined
Apr 26, 2021
Threads
3
Messages
81
Reaction score
74
Location
Connecticut
Vehicles
Lead Foot Lariat
Perhaps he was talking about the Deferred Revenue account, that the Ford 10K referenced?

In my (admittedly limited) experience, that's used sometimes when a company has essentially already sold the item but it is not 100% complete, because it is not fully supported or physically complete, yet the company takes payment for it. Per the SEC rules, the company cannot recognize the revenue until the deal is made whole.

Perhaps. I didn't ask specifically about the partially built ones. Those may be a special case. Ford may have partially built trucks before, but never to this maginitude that it would be as material. Let's listen to their earnings call later in the month and if we get lucky maybe an analyst will ask these questions!
 

Madman

Well-known member
First Name
Kevin
Joined
Aug 24, 2020
Threads
3
Messages
400
Reaction score
425
Location
Boston, MA
Vehicles
3 Ford Explorers
Occupation
Engineer
Perhaps. I didn't ask specifically about the partially built ones. Those may be a special case. Ford may have partially built trucks before, but never to this maginitude that it would be as material. Let's listen to their earnings call later in the month and if we get lucky maybe an analyst will ask these questions!
Agreed!
 

Maggioa

Well-known member
First Name
Anthony
Joined
Mar 24, 2021
Threads
8
Messages
69
Reaction score
40
Location
Rio Rancho, NM
Vehicles
2021 Mazda CX 5, 2018 Hyundai
Occupation
Retired Air Force, Currently a Federal Employee
My dealership’s truck lot is completely empty and they have parallel parked the few vehicles they have along the front of the dealership in an attempt to not look totally bare.
I passed my dealer yesterday and they have now done the same in parking parallel the trucks. So funny normally there are 300+ trucks now i can just about count them on two hands.
Sponsored

 
 




Top