At least 45,000 Fords cannot be sold because of missing parts

Ford said late Monday it will end September with between 40,000 and 45,000 large pickups and SUVs it can’t finish because it doesn’t have all the parts.

Negotiations over several supplies that Ford did not identify are driving up costs. The company warned late Monday of the shortages and price hikes of supplies it will cost him an additional $1 billion this quarter. shares of Ford (F) It fell 5% in premarket trading on Tuesday.

The unfinished vehicle problem should be a temporary setback: While many unfinished vehicles are very profitable for the company, Ford said it should meet its full-year profit targets. That’s because Ford plans to turn the sales revenue it will get from near-finished vehicles in the fourth quarter.

Automakers have struggled with a number of supply chain issues, specifically computer chip shortages, that have stifled vehicle production over the past two years.

This isn’t the first time Ford has built vehicles with most, but not all, of its own computer chips. In March, the company announced that it would ship some SUVs without their less-than-crucial chips and add them later after sales to customers. Sometimes some plants have been forced to close temporarily due to chip shortages.
The shortage of vehicles, coupled with strong consumer demand, has driven vehicle prices to record highs. Much of the money from higher prices goes to car dealerships, – are independent businesses – rather than automakers, as most buyers now pay above the manufacturer’s suggested retail price or sticker price. It has been common for decades for customers to pay less than the sticker price.
Ford and other automakers continue to predict that supply problems will improve. In July, CEO John Lawler told investors the company would see an “upturn.” [in] volumes during the second half of the year, as some chip limits are eased.”

Automakers aren’t the only ones facing supply chain issues and shortages.

A survey of members released Monday by the National Association of Manufacturers found that 78 percent said supply chain disruptions are a top business challenge, while only 11 percent believe improvement will occur by the end of the year.

The survey also found that 76% cited higher raw material costs as a problem like those highlighted by Ford, and 40% said inflationary pressures are worse today than they were six months ago. And 76% said they have problems finding the workers they need.

There is also growing concern that the US economy could soon fall into recession, with most manufacturers expecting a recession later this year or in 2023.

“Three out of four manufacturers still have a positive outlook for their businesses, but optimism has definitely declined,” said NAM CEO Jay Timmons.