Third-quarter revenue was down at Ford Motor Co. in Dearborn and at Stellantis in Auburn Hills due mostly to the microchip shortage that is causing low inventories at dealerships across the country.
Ford reported revenue of $35.7 billion in the third quarter, down moderately from the same quarter a year ago. Ford’s adjusted EBIT was $3 billion, with an adjusted EBIT margin of 8.4 percent. Third-quarter cash flow from operations was $7 billion and adjusted free cash flow was $7.7 billion, both up from the second quarter because of the higher wholesales and profitability, the company said.
Ford ended the third quarter with $31.5 billion of cash and $47.4 billion in total liquidity.
While semiconductor availability remained challenging, Ford reported things are improving. The uptick lifted regional product shipments 67 percent from the second quarter. The volume boost pushed the business unit’s EBIT margin to 10.1 percent. Through the first three quarters of 2021, North America’s EBIT margin was 9 percent, approaching the full-year 2023 regional target of 10 percent.
Despite the challenges, Ford CEO Jim Farley is optimistic about the future.
“This is the most exciting Ford lineup I’ve seen, but what matters is that customers love our new products and services — and we’re just getting started,” Farley says. “The trajectory of our business gives us huge confidence in Ford+, and we’re obsessively turning the plan’s promise into reality.”
Stellantis reported shipments of 1.1 million vehicles, a 27 percent decrease compared to the same period a year ago. According to the automaker, those numbers would have been better had the chip supply not caused a 30 percent (600,000 vehicle) rollback of production.
As a result, the company posted revenues of $37.8 billion, a 14 percent decrease from 2020 figures.
“(Revenues) reflect the success of our recent vehicle launches, including new electrified offerings, combined with significant commercial and industrial actions executed by our teams in response to unfilled semiconductor orders,” says Richard Palmer, CFO at Stellantis.