Ford CEO Jim Farley mentioned on CNBC Wednesday that he expects the chip scarcity influence on enterprise to worsen earlier than it improves, however the automaker shall be arrange for a robust 2022.

“Second quarter goes to be the trough for us,” he informed Jim Cramer in a “Mad Cash” interview. “We expect this quarter goes to be our most tough.”

Farley, who started main the Dearborn, Michigan-based firm in October, is relying on the panorama to brighten later this yr.

“We do depend on a rebound in our manufacturing within the second half,” he mentioned, including that 2022 “goes to be an unbelievable yr for us.”

The feedback come after Ford reported numbers from the primary quarter on the finish of the buying and selling day. The corporate beat Wall Avenue’s estimates on the highest and backside strains.

Ford mentioned it expects the worldwide scarcity of semiconductors, which hit manufacturing across various industries, to have a few $2.5 billion impact on the fiscal yr. The elements downside impacted about 17%, or 200,000 items, within the first quarter, Farley mentioned. In a press launch, Ford mentioned it expects to lose about 1.1 million items of manufacturing this yr because of the scarcity.

“Within the first quarter, we offset all of these manufacturing cuts when it comes to incremental pricing and value management and we didn’t mortgage the longer term to do this. We truly accelerated spending on EV,” he mentioned.

Farley mentioned that the scarcity might lengthen into the second half of 2021, however the firm is able to climate the ache.

Shares of Ford closed 0.48% decrease on Wednesday at $12.43. The inventory was down about 3% in after-hours buying and selling.