Ford needs EV batteries more than semiconductor chips, CEO says

Ford needs EV batteries more than semiconductor chips, CEO says

Ford Motor needs batteries for its electrical automobiles more than semiconductor chips, CEO Jim Farley advised CNBC’s Jim Cramer on Thursday.

His feedback come after the Detroit automaker shut down buyer reservations for an upcoming electrical model of the F-150 after they hit 200,000 models, which is more than double Ford’s annual manufacturing capability for the car. The electrical F-150 Lightning is scheduled to go on sale within the spring.

“We’ll get the semiconductors, that’s a matter of prioritizing the (battery-electric vehicles) over the (internal combustion engine) vehicles,” Farley stated throughout a webcast for the CNBC Investing Club with Jim Cramer. “The issue is batteries. That’s what we have to solve.”

Farley stated the automaker is “completely oversubscribed with our battery electric vehicles,” particularly the F-150 Lightning. He advised CNBC final week that Ford was doing “whatever it takes” to double manufacturing capability for electrical F-150 pickup.

Farley’s feedback could shock many because the automaker continues to cope with a worldwide scarcity of semiconductor chips that has wreaked havoc this 12 months on the worldwide automotive trade.

Read more about electrical automobiles from CNBC Pro

Automakers like Ford are more and more putting offers to supply supplies and elements for electrical automobiles, particularly batteries, to doubtlessly keep away from provide chain interruptions just like the chips scarcity has highlighted.

There’s fear by some Wall Street analysts that demand for EVs will exceed the anticipated provide of vital supplies similar to lithium, creating an issue for automakers to provide the automobiles.

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