Back in April, Ford Motor Company expected to lose up to 50% of its planned second-quarter production due in part to the semiconductor shortage that has seen many of Ford’s competitors put the business of building cars on hold. The crisis did have a negative influence on short-term cash flow, with Ford’s financials showing figures of negative $5.1 billion for the second-quarter. But as the shortage has eased thanks to the ramp-up of production at key Japanese chipmaker Renesas, the effects have been less visible on earnings.
Despite some production stoppages, the company managed to claw back profits by doing what it does best: building popular cars. The Mustang Mach-E was launched only seven months ago and is already the second most popular electric vehicle in the country. The Ford F-150 Lightning, the electric version of one of the most popular cars ever made in the history of humankind, has already racked up over 120,000 reservations since its unveiling in May.
The biggest story here is that three-quarters of these reservations came from customers who are completely new to the Ford brand, opening up even more opportunities for the company to expand. The Bronco, too, has people in a buying frenzy.