Ford Motor Company (NYSE: F) will now sell and ship Ford Explorers without heat control and air conditioning-powering chips. Instead, the company wills send dealers these chips within a year. The company will expect the dealers to install the chips on the customers’ vehicles after the purchase.
Said Depp, a spokesperson for Ford, explained that the customers could still control the air conditioner from the front seats. Moreover, the company will sell the vehicles lower to customers who won’t have rear controls. Ford adds that this is a way for the company to increase its customers quickly. The company also assures its customers that the change is temporary.
Ford’s previous plan was to sell partially done and undrivable Ford Explorers to dealers in 2021. However, these vehicles are drivable and only lack chips. Ford Explorers have been overcrowding its facilities as they await a chip because of a chip shortage.
This is not the first time the company has struggled with supply shortages. Ford has also faced semi-conductor shortages which had made it cut back in producing the F-150. The company also began selling the vehicle without automatic start-stop. Buyers who purchased these vehicles received a $50 credit.
Ford invests in electric cars in Europe
Meanwhile, Ford has also made a $2 billion investment in electric vehicles in Europe. The company has announced that its goal is to sell over 600,000 electric cars in the region by 2025. Moreover, it plans to produce about 1.2 million electric cars in Cologne, Germany, in six years.
This move is in line with the company’s goal to sell more electric vehicles. The company previously announced splitting its operations into internal combustion and electric vehicles. Ford Model e would be in charge of the electric vehicles, while Ford Blue would be responsible for internal combustion vehicles. Moreover, Ford’s Detroit factory expects that 50% of its vehicles will be electric.
Koc Holding AS joins Ford partnership SK Innovation Co
Koc Holding AS has joined the partnership between SK Innovation Co, South Korea, and Ford to produce batteries for electric vehicles. This move is part of Ford’s goal to make 2 million electric cars by 2026. The company has been encouraged by the demand for its first electric vehicles and has since raised its guidance.
