Ford Says It Will Spend $1 Billion More in Third Quarter Because of Supply Chain Problems

Ford Motor said on Monday that the costs of parts would be $1 billion higher in the third quarter of the year than it had expected because of inflation and shortages of some components.

The company and other automakers have been slowed by a computer-chip shortage for nearly two years. Industry executives had expected the squeeze to ease in the second half of this year but Ford’s warning indicates that the supply chain chaos is continuing to hurt car companies and could drag into 2023.

Ford said it expected to end the third quarter with 40,000 to 45,000 mostly completed vehicles that cannot be shipped to dealers because they are missing certain components. That’s higher than the company had expected. In July, about 53,000 vehicles were not completed.

Article source: https://www.nytimes.com/2022/09/19/business/ford-supply-chain.html