For Ford and GM, the future is bright as money from fresh deliveries rolls in.
Now, Automotive News reports that the shortage could be coming to an end for both Ford and GM. The two brands have long battled shortages of almost every kind, from the Bronco top fiasco to GM's own order backlogs.
"Chips are getting better, certainly, than they were a year ago," GM CFO Paul Jacobson said. Both brands are reportedly looking at clearing out their respective order backlogs before the year, something that would put scores of cars in driveways after years of delays.
The financial effect of this for both brands is enormous. Already, GM has reported a 37% increase in net income from last year- up $3.3 billion. Revenue for the brand pushed toward new heights this quarter as well, largely due to deliveries of vehicles. The faster cars hit driveways, the more money Ford and GM will make before the end of the year.
It's a massive turnaround for Ford, which was selling cars without critical features as early as March this year. The Blue Oval reports a 15% year-over-year increase in wholesale shipments during the year's final quarter.
Extrapolate that, as Ford did, and volume is up 10% from 2021.
Ford's CFO, John Lawler, mirrors GM CFO Paul Jacobson's earlier statement. "It's not easing tremendously; it's easing slightly," Lawler said. "But then we're seeing issues in non-chip suppliers."
Presumably, Ford is talking about suppliers of goods aside from electronics, like the aforementioned hardtops for Ford Broncos.
"It has to do with the tight labor market, but ... we're finding with many of the suppliers during the COVID time frame had not invested in maintenance or in their facilities and tooling, and so they're not able to ramp as we expected."