No more than 40,000 Ford parts can be sold

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

Ford said late Monday that it will end September with between 40,000 and 45,000 large pickups and SUVs that can’t be finished because they don’t have all the parts.

Negotiations on various supplies, which Ford did not specify, raise their costs. The company warned late Monday of shortages and price hikes From supplies It will cost her an additional $1 billion this quarter. Ford’s shares were down 5 percent in premarket trading on Tuesday.

The incomplete car problem should be a temporary setback: Although many of the incomplete vehicles are very profitable for the company, Ford said it should be able to meet its full-year profit targets. That’s because Ford plans to shift the sales revenue it will get from semi-finished cars into the fourth quarter.

Automakers have been grappling with numerous supply chain issues, specifically shortages of computer chips, that have brought car production to a halt for most of the past two years.

This isn’t the first time Ford has made cars with most, but not all, of the computer chips it had been waiting for. In March, the company announced that it would ship some SUVs without all of their less important segments and then add them later after they are sold to customers. Sometimes it was forced to shut down some factories temporarily due to a lack of chips.

The shortage of cars, along with strong consumer demand, has driven car prices to record levels. A lot of the windfall from high prices goes to car dealershipsAnd the — and they are independent companies — not the automakers, with most buyers now paying above the manufacturer’s suggested retail price, or sticker price. It has been a common practice for decades for customers to pay less than the sticker price.

Ford and other automakers continue to expect supply problems to improve. In July, Chief Financial Officer John Lawler told investors that the company expects to “increase [in] Trading volumes during the second half of the year, as some chips restrictions eased.”

Automakers don’t just deal with supply chain problems and shortages.

A survey of members published by the National Association of Manufacturers on Monday showed that 78% said supply chain disruptions were the main challenge for their business, with only 11% now believing the improvement will happen by the end of the year.

The survey also found that 76 percent cited rising raw material costs such as those highlighted by Ford as a problem, with 40 percent saying inflationary pressures are worse today than they were six months ago. And 76 percent said they are having problems finding the workers they need.

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

“Three out of four manufacturers still have a positive view of their business, but optimism has certainly waned,” said Jay Timmons, CEO of NAM.

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