Ford Motor, reports a net loss of $3.1 billion in the first quarter, a reversal largely driven by a steep loss in valuation of its stake in EV startup Rivian Inc.
Ford’s factory output continues to be stifled by a semiconductor shortage.
Despite continued challenges securing enough auto parts to keep assembly lines fully running, the quarterly loss compares with a net profit of $3.3 billion in the first quarter of 2021.
*Ford Tweet on latest EV Model F-150
— Ford Motor Company (@Ford) April 26, 2022
Revenue dropped 5% to $34.5 billion in the first quarter,
reflecting lower production, as semiconductor shortage that has dragged on for more than a year as Ford’s factory output suffers, resulting in downtime at several plants during the quarter, further hindering efforts to restock lots with enough vehicles to satisfy consumer demand.
Ford’s weaker quarterly results, were primarily attributed to a $5.4 billion mark-to-market loss on its Rivian investment, but shares of Rivian and other EV startups have fallen in recent months as early investor enthusiasm waned and executives slashed production projections.
- Rivan’s stock has fallen nearly 70% since the start of the year.
The auto industry’s outlook grew increasingly uncertain during the quarter,
a period in which the Ukraine war and pandemic-related restrictions in China further disrupted auto manufacturing and the supply chain, as Auto makers faced added inflationary pressures, on core materials, such as the lithium, cobalt and nickel needed for electric-vehicle batteries.