Why is ford stock dropping today

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Fool Podcasts. New Ventures. Search Search:. Sep 20, at PM. Author Bio John Rosevear is the senior auto specialist for Fool. John has been writing about the auto business and investing for over 20 years, and for The Motley Fool since Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Join Stock Advisor Discounted offers are only available to new members. Stock Advisor launched in February of Lawler said Ford was able to offset earnings losses from its lower production in the first quarter through reduced incentives on vehicles sold, prioritizing production of more profitable vehicles and lower manufacturing costs, among other cost reductions.

The automaker also benefited from higher profits from its financing arm Ford Credit. Comments from analysts regarding the first quarter included "too good," "very impressive" and a "blowout.

Its North American operations recorded a The company believes that the semiconductor issue will bottom out during the second quarter, with improvement through the remainder of the year, but the impacts may continue into The company said it now expects to lose 1.

It also has partially produced about 22, vehicles without chips, including its Ford F pickups, and will complete and ship the vehicles at a later date. Something Wall Street will likely continue to watch is whether or not Farley can keep his promise to maintain low vehicle inventories in North America, which assist profits. A roughly 60 days' supply is typically considered healthy for the industry, while highly configurable vehicles such as pickups are typically higher than that.

Farley told investors Wednesday that the company will run leaner vehicle inventories in the future: "I want to make it extremely clear to everyone.