Why Ford Will Reap the Most Benefits When the Chip Shortage Ends

The global chip shortage has made a huge impact on the automotive industry. Car prices have reached unprecedented highs. Automakers across the board are being put into compromising positions because of the minimal supply of chips. Ford is seeing some of the worst consequences from the lack of chips, but it is prepped to bounce back better than ever.

Why Ford will be the champion of the post-chip shortage period

Ford sign is seen on December 14, 2020 in Hamburg, Germany.
The Ford logo | Jeremy Moeller via Getty Images

This current semiconductor chip shortage is certainly one for the books. It will be hard to forget a supply issue that made car prices go through the roof and caused automakers to delay orders. Some consumers who have purchased Ford vehicles won’t be getting them anytime soon, and they are not happy.

So why is Ford going to make such a huge comeback? The answer is simple: anticipation. Some consumers are forced to wait for their Ford purchases, but many are still willing to wait. Ford has one of the most exciting new vehicle lineups of the year. The Ford Mustang Mach-E is the first Ford Mustang SUV, and it is also an electric vehicle. It is powerful and has an amazing battery range.

The Ford F-150 Lightning is an electric truck that has shocked the world. The F-150 nameplate is responsible for much of Ford’s sales and success, so this development was fascinating. Ford will come out of this chip shortage more successful than other automakers because the company has given consumers options worth the wait. Let’s not forget about the off-roading SUV, the Ford Bronco, that has reemerged after decades. Consumers are so excited about the Bronco that they are paying over $100k to purchase it from private sellers. If demand is still so high despite the company’s many missteps in handling this issue, it will be wildly successful once the semiconductor chips are flowing in abundance again. Ford will continue to win after it gets through the worst of the chip shortage, but how did we get here in the first place?

What is causing the chip shortage?

A new type of 300 millimeter wafer with semiconductor chips and finished microchips of the semiconductor German manufacturer Bosch is pictured in Dresden, eastern Germany on May 31, 2021.
Semiconductor chips | JENS SCHLUETER/AFP via Getty Images

Several different factors contributed to today’s lack of semiconductor chips, one of the biggest factors is the global pandemic. Semiconductor chips play a huge role in how electronic devices like cellphones and even automobiles function. The pandemic caused factories where these chips were being manufactured to close down. Businesses that relied on semiconductor chips foresaw the shortage as the pandemic raged on and began to place huge orders.

Supply was devastated by the demand between the massive orders that companies placed and the limited production of semiconductor chips. The result was a semiconductor chip shortage that impacted the majority of the automotive industry. But what does this mean for your favorite automakers? Companies were inevitably forced to produce fewer vehicles and thus fall behind the demand.

Is the chip shortage getting better?

A blue 2022 Ford F-150 Lightning front 3/4 with open frunk at the 2021 Chicago Auto Show
2022 Ford F-150 Lightning front 3/4 with open frunk | Matthew Skwarczek, MotorBiscuit

The semiconductor chip shortage had some severe consequences for the automotive industry and its many automakers. Used and new car prices have increased just because of supply issues. Automakers have disappointed consumers by being unable to fill orders, often orders that had already been placed.

According to CNN Business, the chip shortage is expected to last for at least another year. So, frankly, it’s actually getting worse. It’s a horrible time to purchase a vehicle because there is so much uncertainty in the industry at the moment. Most brands were completely blindsided by this major event and have little power over whether or not the situation improves anytime soon.

Furthermore, there are still factors in play that are beyond any individual company’s control. What if the pandemic takes a turn for the worse again? The automotive industry has a bright future thanks to the introduction of electric vehicles, but it must get past this hurdle to advance. Luckily for Ford, it has a lineup that is worth waiting on.

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