Ford Motor Company said strong customer demand for its new vehicle lineup in the first quarter of 2022 was tempered by ongoing supply chain issues that reduced the speed at which the company could meet demand.

“The appeal of these products – Bronco, Bronco Sport, Maverick, Mustang Mach-E, E-Transit and now the F-150 Lightning – is undeniable,” CEO Jim Farley said. “That translates into orders, usually with rich configurations that deliver a great experience for those customers and healthy pricing for us. “Now we’re breaking down constraints wherever they exist to get more Ford vehicles – including our innovative electric vehicles – to more customers as quickly as possible.”

The company has pledged to reach a global electric vehicle manufacturing capacity of at least 600,000 by the end of 2023, for which it is accelerating battery procurement, with a view to manufacturing more than two million vehicles per year by the end of 2026. In the past quarter, the continued global shortage of semiconductors dampened Ford’s production and shipments in January and February, although manufacturing rates improved significantly in March.

The company entered the second quarter with what Farley called an “extremely healthy” order bank. Ford posted first-quarter revenue of $34.5 billion, with wholesale deliveries of nearly 970,000 vehicles, down 9% from a year ago. A net loss of $3.1 billion was primarily attributable to a $5.4 billion loss on the company’s investment in Rivian. Adjusted earnings before interest and taxes were $2.3 billion, with an adjusted EBIT margin of 6.7%.

Profitability was improved by an increase in net pricing, including continued discipline in incentive spending, but more than offset by higher commodity prices, lower overall product shipments and a weaker pickup mix and large SUVs.

The company again ended the quarter with strong total cash and liquidity – nearly $29 billion and $45 billion, respectively. Both figures included Ford’s stake in Rivian, which was valued at $5.1 billion as of March 31, up from $10.6 billion at the end of 2021.

North America

In North America, Ford generated $1.6 billion in EBIT. The company said supply disruptions in the first quarter limited fundamental earnings and the earning power of the regional business. Collectively, the company’s Europe, South America, China and International Markets Group business units – all of which have been restructured and refocused in recent years – produced EBIT of $300 million.

Ford Europe

Ford in Europe generated positive EBIT despite lower supply-related volumes. The company maintained its seven-year position as the region’s No. 1 commercial vehicle brand. The FORDLiive connected availability system, introduced in Europe a year ago, has collectively provided customers with approximately 66,000 additional days of vehicle availability in the first quarter of 2022 alone – an example of the powerful services value that Ford Pro will offer businesses in markets around the world.

South America

Ford’s business in South America reflected the benefits of its restructuring into a low-risk, low-capital business, achieving a third consecutive quarter of profitability. The introductions of the Maverick and Ranger FX4 pickup trucks are expected to be very popular with existing and new customers in the region.

China

In China, Ford continues to establish the Lincoln brand with luxury vehicle buyers and as the company’s long-term profit engine in the strategically important market. The brand’s customer experience and dealer network in the country are being modernized and expanded in preparation for Lincoln’s all-electric future.

IMG

IMG remained solidly profitable, even with a 33% drop in wholesale sales in the first quarter, mainly due to restructuring in India and the effects of semiconductors and other supply constraints on production elsewhere in the world. ‘business. Customers in IMG countries are anticipating the launch of the next-generation Ranger pickup later this year.

Ford Credit had another strong quarter, with pretax profit of $928 million. During the quarter, same-day approval and pre-arranged financing options for small business customers were introduced to the unit’s ever-growing suite of services.

Farley said the company has identified and is addressing a variety of key competitive issues that are holding back profitability and growth. “There are big things that we do extremely well, like mass-produce vehicles that are in high demand,” Farley said.

“And others, in existing and ambitious areas, where we need to improve – and we will.” Several of these areas of improvement drove the decision, announced on March 2, to clearly define and assign priorities, make the most of existing strengths and build new strategic muscle by creating distinct automotive businesses within from Ford:

• Ford Blue, a key source of growth, profitability and liquidity from an enhanced and optimized portfolio of iconic internal combustion vehicles

• Ford Model e, to rapidly develop and bring to market innovative connected electric vehicles and digital services, the latter being shared across all of the company’s product lines, and

• Ford Pro, which helps commercial customers transform their businesses with tailored ICE and electric vehicles and services.