More than 45,000 Fords cannot be sold due to missing parts

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A still-disrupted global supply chain continues to wreak havoc on the auto industry. Related video above: Ford debuts Mustang at unveiling party in Detroit. Ford announced late Monday that it will end between 40,000 and 45,000 large pickup trucks and SUVs in September that it can’t complete because it doesn’t have all the parts. Negotiations for various supplies, which Ford did not name, are driving up its costs. The company warned late Monday that shortages and rising supply prices would cost it an extra billion dollars this quarter. Ford shares fell 5% in premarket trading on Tuesday. The backlog issue should be a temporary setback: While many of the backlogs are very profitable for the company, Ford said it needs to hit its full-year profit targets. That’s because Ford plans to shift revenue from sales of near-complete vehicles to the fourth quarter. Automakers have grappled with a variety of supply chain issues, notably a shortage of computer chips that halted car production for much of last year. two years. This isn’t the first time Ford has built cars with most, but not all, computer chips as expected. The company announced in March that it would ship some SUVs without all the less important chips, then add them later when they are sold to customers. At times, it has been forced to temporarily close some factories altogether due to chip shortages. A shortage of vehicles combined with strong consumer demand has sent car prices soaring to record highs. Much of the windfall from price increases goes to auto dealerships, which are independent businesses, rather than automakers, as most buyers now pay more than the manufacturer’s suggested retail price or sticker price. For decades, it was common practice for customers to pay less than the sticker price. Ford and other automakers continue to expect supply problems to improve. A survey of members released by the National Association of Manufacturers on Monday showed that 78% say supply chain disruptions are their top business concern, and only 11% now believe improvement will occur by the end of the year. The survey also found that 76% cited higher raw material costs, such as those that Ford singled out as a problem, with 40% saying inflationary pressures are worse today than six months ago. And 76% said they had problems finding the right workers. Concerns are growing that the U.S. economy could soon slip 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 business, but optimism has definitely waned,” – said NAM CEO Jay Timmons.

A still-choked global supply chain continues to wreak havoc on the auto industry.

Related video above: Ford debuts Mustang at open-air party in Detroit

Ford said late Monday that between 40,000 and 45,000 large pickup trucks and SUVs it could not finish because it did not have all the parts until the end of September.

Negotiations for various supplies, which Ford did not name, are driving up its costs. The company warned late Monday that shortages and rising prices with consumables will cost an additional $1 billion this quarter. Ford shares fell 5% in premarket trading on Tuesday.

The backlog issue should be a temporary setback: While many of the backlogs are very profitable for the company, Ford said it should hit its profit target for the full year. That’s because Ford plans to shift earnings from sales of near-finished vehicles to the fourth quarter.

Automakers are grappling with a variety of supply chain issues, particularly a shortage of computer chips that has halted car production for much of the past two years.

This isn’t the first time Ford has built cars with most, but not all, computer chips as expected. The company announced in March that it would ship some SUVs without all the less important chips, then add them later when they are sold to customers. Sometimes it was forced to temporarily close some factories altogether due to a shortage of chips.

A shortage of vehicles combined with high consumer demand has sent car prices soaring to record highs. Much of the windfall from price increases goes to auto dealerships, which are independent businesses, rather than automakers, as most buyers now pay more than the manufacturer’s suggested retail price or sticker price. For decades, it was common practice for customers to pay less than the sticker price.

Ford and other automakers continue to expect supply problems to improve. In July, CFO John Lawler told investors that the company expected “growth.” [in] volumes until the second half of the year, when some chip restrictions are eased.”

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

A survey of members by the National Association of Manufacturers released Monday found that 78% say supply chain disruptions are their top business concern, and only 11% now believe there will be an improvement by the end of the year.

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

There is also growing concern that the US economy could soon slip 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 business, but optimism has definitely waned,” said NAM CEO Jay Timmons.

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