Ford Expects Production Interruption Due To Parts Supply Shortage

Ford Motor Company (NYSE: F) is anticipating a high number of its vehicles being built to not immediately leave the warehouse as shortages in the supply chain leave the company waiting for parts.

The company announced on Monday that it estimates around “40,000 to 45,000 of [vehicles], largely high-margin trucks and SUVs,” will be stalled at the production facility for the third quarter. This will cost the firm about US$1.0 billion higher in supplier costs, spurred further by the effects of inflation.

As the automaker expects this backlog to be sold in the fourth quarter instead, it has adjusted its third quarter EBIT guidance to US$1.4 billion – US$1.7 billion.

However, it reiterates its full-year 2022 EBIT guidance of US$11.5 billion – US$12.5 billion.

Inflation and potential recession have been a looming threat for the American manufacturer, having to announce a 3,000-job cut back in August 2022. Adding to the company’s conundrum is the US$1.7 billion payment in punitive damages after a court in Georgia ruled against the pickup truck maker in a fatal 2014 rollover accident.

Ford Motor Company last traded US$13.70 on the NYSE


Information for this briefing was found via Ford. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Why Copper Juniors Could Explode After This Trade War Move | Christian Easterday – Hot Chili

Silver Is Rarer Than Gold, And the Market’s Waking Up | Shawn Khunkhun – Dolly Varden Silver

Gold Will Hit North of $4,000: Who’s Actually Producing? | Shane Williams – West Red Lake

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

U.S. House Democrats Propose Generally Positive Changes to Electric Vehicle Purchase Incentives

On September 10, Democratic members of the U.S. House Ways and Means Committee proposed updated...

Monday, September 13, 2021, 01:30:00 PM

Ford Pulls 2025 Outlook as Auto Tariffs Expected to Slash Profits

Ford Motor Company (NYSE: F) has suspended its full-year financial guidance for 2025, projecting that...

Tuesday, May 6, 2025, 12:57:00 PM

Canada Could Face Autoworker Strikes Monday Night

The clock is ticking for Unifor and Ford Motor Co. (NYSE: F) in Canada, with...

Monday, September 18, 2023, 03:40:00 PM

Ford Recalls F-150 Trucks Due To Parking Brake Issue

Ford (NYSE: F) announced on Friday a safety recall affecting 870,000 F-150 trucks in the...

Friday, July 28, 2023, 01:38:15 PM

Ford’s 2021 Sales Fell 6.8% Despite Robust Fourth Quarter

Ford’s auto sales slumped 6.8% last year, as ongoing global semiconductor shortages continued to weigh...

Thursday, January 6, 2022, 10:36:00 AM