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Ford expects semiconductor rebound, new vehicle demand to increase 2021 profits

Despite semiconductor shortages peaking during the second quarter of 2021, Ford says it delivered better-than-expected operating results by leveraging strong demand for new vehicles, like its Bronco SUV, according to its most recent earnings report. In April, Ford had expected to lose about 50% of its planned Q2 production, resulting in a profit loss for the period. With demand for the Mustang Mach-E, which CEO Jim Farley said is already profitable on Wednesday’s earnings call, and other Ford vehicles up 7x from last year, Farley said “the business is ‘spring loaded’ for a rebound when semiconductor supplies stabilize and more closely match demand,” according to a statement released by Ford.

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