Ford Already Benefited from Teaming Up with Rivian
Ford’s revenue surpassed that of its main rival, GM, for the second year in a row. Is its stake in EV startup Rivian is largely responsible?
Ford
is ready for change. The American auto giant launched its first long range EV, the Mustang Mach-E, for 2021 and has at least three more in the barrel expected in the next few years. But that’s only one part of the company’s EV strategy.In 2019, Ford purchased a $500 million stake in
Rivian
, an EV startup based in Irvine, California. When the new company went public in November 2021, its stock spiked in value, giving Ford the $9.1 billion boost in revenue it needed to surpass its rival, General Motors (GM).All in all, 2022 looks promising for the blue oval. The company expects to increase profits by 15-25% this year.
Jerry
looked closer to see if the optimism is warranted. How did Ford do so well in 2021?
2021 turned out much better than people guessed for the auto industry. Despite ongoing supply chain holdups and
microchip shortages
, many companies saw significant gains compared to the previous year, Ford included.By December’s end, Ford had surpassed 2020’s revenue numbers by $9 billion, eclipsing GM for the second year in a row. The
New York Times
compared the increase to the gains won by Rivian’s stock exchange success, but that wasn’t the only thing keeping Ford afloat in 2021.Like many of the other major players in the industry, Ford focused (excuse the pun) on building higher priced and popular models to keep revenue up as the chip shortage slowed production.
GM
also had a good year, though not good enough take back first-place from Ford in the U.S.What does 2022 look like for Ford?
With the gains it made in 2021, Ford sees the fog of the last few years lifting this year. The company expects a significant increase in sales as microchip supplies improve over the next six months, thanks in part to its upcoming electric vehicles.
The Ford
F-150 Lightning
has the most hyped of the brand’s new electric models. Many EV fans hope the electrification of the country’s bestselling vehicle will push the transition off gasoline into the mainstream. But Ford hopes its other two 2022 EV releases will do their part as well.On the private-use side of things, the company wants its electric Explorer to convince more American families to make the switch. Ford will also release the E-Transit this year, a fully electric utility van the company hopes will take the delivery industry by storm.
What will car insurance for Fords look like in 2022?
Car insurance
took a turn policyholders didn’t enjoy in 2021. That nasty chip shortage reared its head again. The lower production numbers and emphasis on builing higher trim levels rose the average cost of a new car, and average premiums went along with it. As vehicle prices level out, we could see the average cost of car insurance mellow too, but the
new EVs
headed to dealers, most of which start at over $40,000, will do their part to keep coverage more expensive on average than it was in the years before the pandemic.That said, you can always save on coverage by shopping with
Jerry
. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and will even help you cancel your old policy.
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