Ford CFO says inflation has erased Mustang Mach-E profits, but isn’t hurting demand for new vehicles

Ford Motor’s CFO said Wednesday that the company isn’t yet seeing consumer demand for new vehicles drop off – but rising commodity costs have wiped out the profit it initially expected to make on its electric Mustang Mach-E.

Demand for new Fords and Lincolns continues to exceed supply, which is still constrained by an ongoing global shortage of semiconductor chips, Ford CFO John Lawler told analysts at a conference hosted by Deutsche Bank – even after the company raised vehicle prices to offset the effects of inflation.

For the most part, those price increases have preserved Ford’s profit margins, Lawler said. But the price rises weren’t enough to offset the impact of climbing costs on the company’s electric Mustang Mach-E.