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Ford CEO Farley Says Additional Deals With Chipmakers Are Coming

Amid a number of supply chain constraints and surging raw materials prices, automakers certainly have plenty of issues to deal with these days. The semiconductor chip shortage remains the largest thorn in the sides of those companies, as the chip supply hasn’t recovered to the point where automakers can ramp production back up to pre-pandemic levels. However, Ford CEO Jim Farley recently noted that The Blue Oval is working on making some additional deals with chipmakers to help improve that flow, as he explained while speaking at Ford’s 2022 shareholder’s meeting.

Jim Farley

“The other thing we must do is secure contracts with our supplier or suppliers, where possible, in commodities we know will be constrained like semiconductors,” Farley said. “In the case of semiconductors, that will require both mature node semiconductors or feature-rich semiconductors like window regulators, as well as the advanced nodes that run our connectivity electronic components, as well as infotainment. These will be very important, and you’ve seen announcements like GlobalFoundries, there’ll be more of those, and we’ll have to do it on the raw material and the battery side as well.”

The Ford CEO is referring to a strategic alliance the automaker formed with GlobalFoundries Inc. – a global leader in semiconductor manufacturing – last November, which aims to boost chip supplies by advancing semiconductor technology development and manufacturing in the U.S. In addition, Ford of Europe recently joined two new supply chain initiatives while the automaker is also considering getting into vertical integration in regards to the raw materials used in the construction of EV batteries.

In the meantime, Ford has heavily revised the way it does business amid all of these shortages, even removing certain non-critical features from vehicles temporarily. This will likely continue for some time, as Farley previously said that he expects the chip shortage to last through next year, while the majority of new vehicle shoppers are a bit more optimistic in that regard.

We’ll have more on the chip shortage soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Alan H

    With all the talk with how they are progressing, they keep launching newer models ect.., but can’t filled the orders they already have. Stop proceeding with newer versions of broncos and fill the orders you have. I have a 1/20/2021 order for a bronco and have yet to see any update on my order both dealer and your customer service can’t tell me anything. Is Ford going to offer special financing options or rebates for the people that have been waiting on their orders to be built. % rate have gone up since many of us placed order by 4% is that fair for the customer to have to suffer due to Ford not building orders already placed. It seems Ford wants theses orders to go away so they can either take off the books and or the dealers get them whenever they are built. If I should ever get my Bronco it will be the last FORD I will buy.

    Reply
    1. Dennis

      I’m right there with you Alan H. Although I haven’t been waiting as long, I share your frustration as , I’m sure, countless others.
      My ‘22 model was ordered 11/12/21. Customer service tells me it’s built, but waiting for chips, with no definite estimate for completion. My reward for the wait is a $1,250 price increase & .25% increase in financing. I’m a GM retiree defecting because they don’t offer a comparable vehicle to the Bronco. GM isn’t making their customers wait as long as Ford. Something is wrong in Ford’s handling of this crisis.

      Reply
      1. Alan H

        I would check if you have an order # your price was suppose to be locked in at that price. Yeah the big kicker is the tube doors I was going to get were 695 and 1250 for the 4 door and had to be put on by dealer and I couldn’t order due to no vin #. now the same doors are 1250 and 2250 and are not having to be installed by dealer because they don’t have the time and yes I can order now without a vin#. TOTAL BS I would check on the price, also make sure that one isn’t one of the ten thousands that have been sitting in holding areas for a year. They totally screwed this launch of the bronco. Chevy is looking at making a true blazer to go against the bronco and better they are looking at using the Silverado as the base. Hopefully that would become an actual truck. Good luck

        Reply
  2. Kenny D

    removing certain non-critical features from vehicles ” (temporarily)” So How’s about Explaining that LAST word their JIMMY??????? Or “MAYBE” Someone has the Answers HERE on FORD Authority????? MY DEALER, and all the one’s I’ve talked to out of our State, (CALIF), have No Clue either. I been waiting for some kind of Confirmation on my F-150 Being Built and I’ve all but given up! From what little I know from this site and it’s accuracy, some of the OPTIONS I ordered are being Eliminated from my Build/Order Due to CHIP Shortage’s, However, no one can tell Me/Us If these “OPTIONS” will be able to be Activated or Enabled at a later DATE??? I hear Rumors that the MachE Options deleted will be able to be “Turned On or Installed” at a Later Date. This whole CHIP B.S. is Literally KILLING the USofA!!!!

    Reply
    1. Dennis

      Ues, Kenny D, I have an order number. When I track the order & view the window sticker, the price is $2250 more than what I ordered it for. My dealer tells me he can request price protection, but only after it’s ordered. Original delivery date was 5/7/22. Call to customer service says no later than 7/15/22. Every estimate is a moving target. I’m losing patience.
      Good luck to us all!

      Reply
      1. Dennis

        Sorry, typo; $1,250, not $2,250

        Reply
        1. Dennis

          Geez, so many errors. Sorry. Price protection after it’s delivered.

          Reply
      2. Alan H

        Price Increases and Protection
        With the B&P update, Ford also listed new pricing for the Bronco, to cover market realities. This is the second time MY22 Bronco has received price increases.

        MY22

        The first set of increases came in October 2021, when order banks opened for MY22. Despite the increases, Ford promised price protection: Reservation and order holders as of March 19, 2021 would receive MY21 pricing for a similarly equipped MY22/23 Bronco.

        MY22.5

        Now, prices have increased again: MY22.5 costs rose $1,250-$2,000.

        Regardless, price protection still applies to all customers with a reservation/order placed by March 19, 2021. What Ford calls “retail order price protection” potentially applies to customers with a reservation or order placed without a reservation after March 19, 2021. We’ll get into the nuances of what causes a price increase below the chart.

        Reply
  3. donnie

    Ford management is a farce-wonder if there bonus is going to be cut-everything passed on to customer-where is the ford we once knew and respected?????

    Reply
  4. Brad Barefoot

    Ford … it’s time for “deeds” not “words”. Impress me and get to work for a change, and stop talking about the problem and solve the problem. One problem … the Maverick pickup in the XL trim … offer the cruise control, sat/radio, and factory nav/system. The Maverick would be a welcome addition to many US small business owners … like a small engine dealership, a pickup an delivery vehicle like the Maverick would be great. But we don’t need the $30K model just to get cruise, sat/radio, an factory nav/system … I sure I’m not the only one to think this. An one other thing … move production from Mexico to the US … you’ve got the factory space to do this.

    Reply
  5. Alan H

    Agreed with all that has written. I thought about a class action suit against them. Certain models being ordered after mine but delivered before mine. Now the issues with the 2.7 motor , it is one thing after another with them.

    Reply

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