Posted on 09/21/2022 6:31:40 AM PDT by rktman
As Ford grapples with nearly $1 billion in elevated expenses from suppliers due to inflationary pressures, those same suppliers have been unable to provide parts for nearly 45,000 trucks and SUVs, forcing them to be left unfinished in the third quarter.
Ford noted that it didn’t anticipate its yearly revenue would need to be adjusted, as it expected the affected trucks and SUVs to be sold in the third quarter, according to a press release, but its estimated profit of around $1.5 billion in quarter three is about half of the expected $3 billion in quarterly profits, according to Yahoo Finance. Ford stocks fell almost 5% in after-hours trading Monday following the news, according to The Wall Street Journal, and by time of writing had fallen more than 9.25%.
Vehicles “awaiting those parts disproportionately include high-demand, high-margin models of popular trucks and SUVs,” Ford said in its press release. “According to the company, based on recent negotiations, inflation-related supplier costs during the third quarter will run about $1.0 billion higher than originally expected.”
(Excerpt) Read more at dailycaller.com ...
Domestic auto manufacturers will always struggle as long as they have to bear the burden of union labor.
The real problem is that Ford invested a huge amount of capital researching, designing and building electric vehicles. Except for a few niche models, they cannot sell enough of these vehicles to make a profit or even service the debts they incurred to assemble that capital. GM is in equally bad shape for the same reason.
But everything is going great.
Just ask Joe.
Country isn’t ready for EV. It’s all about logistcs and can only occur with a strong economy. They need a plan B.
Well, at least Dodge is gonna keep ICE rams for a while longer. Chargers and such? Bye bye. EVs coming at you.
Green agenda collateral wreckage.
And environmental restrictions.
I saw this many years ago during the “gas crisis” in the 70s. I worked at a GM Assembly plant and they took any vehicles in process that were not on the final line for completion or shipping...wrapped them in plastic and stored them out back of the plant. There were layoffs and a shut down for a while. Not pretty.
That's not a bug, that's a feature. Say 'bye bye' to personal transportation.
If Ford had a brain they would go back and manufacture pre 70 vehicles without all the bells and whistles.
My 70 Ford Maverick had everything I needed and made 29 mpg.
100% agree with both of those. I'd argue that part of Ford's push to EV's are the environmental restrictions. Ford's cash cow for decades are it's pickups. The gubment's CAFE standards flies in the face of pickups, thus Ford's average mpg is improved if part of it's products are EV's.
What I'm saying is, if you hate the car manufacturers planning to go EV-only, put the blame on the gubment first, not car companies run by free American citizens like us who are just trying to make a profit without being put in the gubment's pergatory.
Using union labor is a burden as it adds about 3-4% to the sticker price per vehicle. Bad yes, but not horrible as some think.
Don't get me wrong, Ford is putting $12B into BlueOval City and the 2 batt plants, but they're not closing the truck plants anytime soon, and they don't really care about the oversupply or supply-chain issues (ask a Ford dealer if his repair guy ever gets a call returned from national lol).
They wouldn’t get so many repeat customers, I suppose, but I do sometimes wonder why a car company doesn’t manufacture an “old school” vehicle which is just simple to operate and repair. It’s nice to have a car last decades, but the fancy high tech models are pretty tricky to maintain by yourself.
The loooooong time alliance between big oil and the automakers is over, they are now enemies!!!
That’s what happens when you decide to market a product the general public does not want.
EV makers want higher gasoline prices so guess what, they will get them by hook or by crook.
EV technology isn't ready for the country.
“If Ford had a brain they would go back and manufacture pre 70 vehicles without all the bells and whistles.”
They would fly off the shelves if they did that...I would buy two.
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