1:41:38 AM PDT - Sunday, September 25th, 2022

Why Ford will have to eat an extra $1B in supplier costs this quarter  

By Editor - Mon Sep 19, 3:41 pm

Ford said Monday that supplier costs will be $1 billion higher in the third quarter than expected due to rising inflation and persistent supply chain problems. Ford also disclosed that supply shortages have caused a backlog of thousands of assembled, yet incomplete vehicles. Ford anticipates that between 40,000 and 45,000 unfinished vehicles — most of which are high-margin trucks and SUVs — will remain in the automaker’s inventory waiting for needed parts through the end of the third quarter. Shares fell 5.49% in after-hours trading. Supply chain issues have plagued the automotive industry since early 2020 when the COVID-19 pandemic prompted governments in China, the U.S. and Europe to halt manufacturing operations. Supplier problems coupled with rising inflation continue to affect automakers’ ability to deliver vehicles

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Why Ford will have to eat an extra $1B in supplier costs this quarter

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