Raw material prices continued to be an obstacle to engine, CEO Jim Farley told CNBC’s Jim Cramer on Wednesday, but the company managed to compensate them through its pricing strategy.
“The commodity pressure, the premium freight that we’re seeing, I mean, it’s really real… The good thing is that our prices have offset all of that. I think we’re making less as a company, so we have more costs to do this year, next year, next couple of years,” Farley said in an interview on “bad money.”
Some of the commodities where Ford has seen higher costs include steel, aluminum, nickel, cobalt and lithium, according to Farley.
“We had a couple of really bad raw materials that held back our most profitable units and we think that’s one area where we have an advantage in the second quarter, in the second half,” he added.
The chief executive also said that the company plans to take more pricing measures, particularly on its electric vehicles. Farley he told CNBC on Tuesday that he believes the company will be able to produce 150,000 F-150 Lightning EVs within the next year, even in the face of supply chain issues.
Ford reported better-than-expected revenue and earnings in its first quarter on Wednesday. Ford shares were up about 1% after hours.
Disclosure: Cramer’s Charitable Trust owns Ford stock.
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