Ford Motor Co said on Wednesday, while announcing the latest North America production cuts at seven assembly plants due to the global chip shortage, that it would provide an update on April 28 to the expected hit to its 2021 profit.
The U.S. automaker previously said its operating profit this year would be reduced by $1 billion to $2.5 billion. The update to that forecast will be provided when Ford reports first-quarter results on April 28. A spokeswoman declined further comment.
U.S. rival General Motors Co previously said its 2021 profit could be shaved by up to $2 billion due to the chip shortage.
Earlier on Wednesday, GM Chief Financial Officer Paul Jacobson, speaking at a Bank of America conference, said he still felt comfortable with the company’s 2021 profit forecast despite the chip shortage. GM said in February that, including the chip hit, it expected to earn $4.50 to $5.25 a share this year.
Semiconductors are used extensively in cars, including to monitor engine performance, manage steering or automatic windows, and in sensors used in parking and entertainment systems.