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Why Ford will have to eat an extra $1B in supplier costs this quarter

"Ford also disclosed that supply shortages have caused a backlog of thousands of assembled, yet incomplete vehicles. Ford anticipates between 40,000 to 45,000 unfinished vehicles — most of which are high-margin trucks and SUVs — will remain in the automaker’s inventory waiting for needed parts through the end of the third quarter."

Full press release:https://media.ford.com/content/ford...ect-of-parts-shortages-on-q3-performance.html

Yikes...
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Yeah they are getting the backlog done in 2023…….. not
 

swooshdave

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It obviously demand that is driving up the prices but this video does a nice job on explaining what happened to the chips. There was another article I read that said that Ford (and other automakers) rely on their parts suppliers to order the chips and they Ford (for example) doesn't order the chips directly. But that Ford would be changing that model and taking a more active role in procuring the chips.

Unfortunately that process takes a while.
 

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Explains the likely reason I blended 9/13 and stuck in production a week later. Modules are live and it has a tear tag.

Dang. I guess it’s off to leaf peeper mountain.

I Just sold my motorcycle today to clear the Broncos stable space. my friends and family think I’m crazy for remaining this patient. Making life decisions around the Bronco order has caused so much frustration.
 

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Explains the likely reason I blended 9/13 and stuck in production a week later. Modules are live and it has a tear tag.

Dang. I guess it’s off to leaf peeper mountain.

I Just sold my motorcycle today to clear the Broncos stable space. my friends and family think I’m crazy for remaining this patient. Making life decisions around the Bronco order has caused so much frustration.
Mine was built on 9 August. 4 door base model with SAS....Expected delivery was 22 August...Still no Bronco. Dealership said that the Zone Rep will no longer give them information about vehicles that they are waiting on 🙈
 

jehines3

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Mine was built on 9 August. 4 door base model with SAS....Expected delivery was 22 August...Still no Bronco. Dealership said that the Zone Rep will no longer give them information about vehicles that they are waiting on 🙈
sorry To hear. It’s an emotional ride for sure! Some from my build week did ship and they were also loaded badlands with Lux. I think SAS wheels were a supplier constraint. I’m not a SAS build and even stayed soft tool just to keep moving. As a boat owner, I do need the trailer Tow package from the factory and that was a non negotiable. I really do wonder what specific parts are outstanding on the recent builds. Our build week spreadsheet isn’t obviously pointing to anything in the options list.
 

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sorry To hear. It’s an emotional ride for sure! Some from my build week did ship and they were also loaded badlands with Lux. I think SAS wheels were a supplier constraint. I’m not a SAS build and even stayed soft tool just to keep moving. As a boat owner, I do need the trailer Tow package from the factory and that was a non negotiable. I really do wonder what specific parts are outstanding on the recent builds. Our build week spreadsheet isn’t obviously pointing to anything in the options list.
What gets me, if the vehicle is scheduled clean, they are supposed to have all the parts 😂
 

DCtoobs42

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Mine was built on 9 August. 4 door base model with SAS....Expected delivery was 22 August...Still no Bronco. Dealership said that the Zone Rep will no longer give them information about vehicles that they are waiting on 🙈
It seems that customer support via chat and phone (both previously very helpful) seem to have done the same. The language has changed to reflect "All dates that have been previously disclosed or that are published on the tracker are TBD at this time..."

Didn't they claim a few months ago that they intend to clear the Bronco backlog by the end of the calendar year?!?! (Sarcasm... didn't believe it then, certainly don't now.)
 
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jehines3

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What gets me, if the vehicle is scheduled clean, they are supposed to have all the parts 😂
Many manufacturers realized the threat of running a lean just in time manufacturing practice during the pandemic. It’s hard to shift from JIT when you are already in the weeds. I’m sure suppliers are promising parts and between delays on the manufacturer end or the shipping they aren’t being received in time. Ford is not alone in this problem right now. As an essential employee, some of us are just tired of hearing about Panedmic excuses.
 
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But let's build FORD Raptors, Bronco Raptors, Lightning, Maverick, etc. Yes there are constraints. But FORD is selective in what they are building versus what they are not.

I've said it before and I will keep saying it until everyone of my reservation holding brothers and sisters have their truck. FORD did this purposely. This is a complete failure of a company. They do not honor their reservation holders with this behavior that will continue through next year at least.
 

J Jernigan

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But let's build FORD Raptors, Bronco Raptors, Lightning, Maverick, etc. Yes there are constraints. But FORD is selective in what they are building versus what they are not.

I've said it before and I will keep saying it until everyone of my reservation holding brothers and sisters have their truck. FORD did this purposely. This is a complete failure of a company. They do not honor their reservation holders with this behavior that will continue through next year at least.

All of the above vehicles mentioned are dealing with the same problem. I have an f-150 on order that was built 8/5 and still is on a hold at the plant. Great Lakes region is getting just a handful of raptor r’s.. Mavericks are almost non existent. Everything sucks. What do they have to gain by doing this purposely? Ford is sitting on some of the best product of all the domestic manufacturers right now and trust me when I say they would want nothing more then for this to get cleared up.
 

2020FordRaptor

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Why Ford will have to eat an extra $1B in supplier costs this quarter

"Ford also disclosed that supply shortages have caused a backlog of thousands of assembled, yet incomplete vehicles. Ford anticipates between 40,000 to 45,000 unfinished vehicles — most of which are high-margin trucks and SUVs — will remain in the automaker’s inventory waiting for needed parts through the end of the third quarter."

Full press release:https://media.ford.com/content/ford...ect-of-parts-shortages-on-q3-performance.html

Yikes...
See this is what some people don't realiE. Ford doesn't like losing money so it's not like they like not getting the Bronco to us.
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