Ford said on Monday that supplier costs would be $1 billion higher in the third quarter than expected due to rising inflation and ongoing problems in the supply chain.
Ford also revealed The lack of supply has caused a backlog of thousands of assembled but unfinished vehicles. Ford predicts that between 40,000 and 45,000 unfinished vehicles – mostly trucks and high-margin SUVs – will remain in the automaker’s inventory pending the necessary parts through the end of the third quarter.
Shares fell 5.49% in after-hours trading.
Supply chain issues have affected the auto industry since early 2020 as the COVID-19 pandemic prompted governments in China, the US and Europe to halt production. Supplier problems coupled with rising inflation continue to affect carmakers’ ability to supply vehicles.
For example, Rivian warning in August that it is expected to lose $5.45 billion by 2022, up from 4.75 billion dollars estimated it had shared three months earlier due to “supply chain challenges” and “raw material inflation”. GM reported second-quarter net income for July of $1.69 billion, down 40% year-on-year as supply chain disruptions and semiconductor shortages caused bottlenecks at its factories. the firm.
Despite the unexpected higher cost and availability of certain parts, Ford stuck to its 2022 adjusted earnings projection before interest and taxes guidance from $11.5 billion to $12 billion. $5.5 billion. That’s largely because Ford is expected to sell off its inventory in the fourth quarter.
Ford changed its third-quarter adjusted earnings before interest and taxes to between $1.4 billion and $1.7 billion.
The company is expected to report third-quarter earnings results on October 26.