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Inflation and logistical hindrances hold back Ford’s plans

Inflation and logistical hindrances hold back Ford's plans

Ford announces higher supplier costs and around 40-45,000 vehicles stopped in warehouses due to lack of spare parts. All the details

US carmaker Ford Motor said that supplier costs will be $ 1 billion higher than expected in the current quarter due to inflation.

The company also estimates that it has between 40,000 and 45,000 vehicles in stock without spare parts: as a result, sales will suffer delays.

HOW DO THE ACTIONS GO

Yesterday in the after hours trading (the one that takes place after the close of the financial markets) Ford shares fell 4.4 percent to $ 14.27.

FORD FORECASTS FOR 2022

Ford – the second largest carmaker in the United States – has confirmed its forecast of adjusted profit (before interest and taxes) for 2022, which remains between 11.5 and 12.5 billion dollars "despite the availability limits of some components and the higher payments made to suppliers to take into account the effects of inflation ".

THE LACK OF AUTO PARTS

The company said that due to the shortage of unspecified auto parts, some 40,000 to 45,000 vehicles already built (more than previously estimated) will remain in stock: they will be delivered to dealers during the fourth quarter of the year. The vehicles in question are mainly SUVs and high margin trucks.

“Other auto manufacturers are also struggling to supply dealerships, citing the shortage of semiconductors and other components needed to assemble cars and trucks,” writes MF-Milano Finanza . General Motors, for example, announced this summer that nearly 100,000 vehicles would not be delivered to dealerships due to a lack of chips and other key components.

– Read also: Here is the impact of the absence of chips on the Italian plants of Stellantis

FORD'S EBIT ADJUSTED

Ford's adjusted EBIT for the third quarter of 2022 (July-September) will range between $ 1.4 and $ 1.7 billion.

INTRODUCING THE SUPPLY CHAIN ​​AND INCREASING RAW MATERIALS

Ford said in July that its second-quarter results had been driven by high-margin vehicles (the very ones now in stock) and that it was still facing supply chain hitches .

The company also said it expected an annual increase in raw material costs of $ 4 billion, and that executives were looking for a solution to offset the price increase.


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/ford-carenza-componenti-aumento-costi/ on Tue, 20 Sep 2022 11:43:23 +0000.