Ford to spend $1 billion more than expected on supplier costs

Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A man drives a bus in front of the Ford logo at the Ford India plant located in Chengalpattu, some 50km south of Chennai, India, 13 September 2021. EPA-EFE/IDREES MOHAMMED/FILE" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/tvpatrol/09/20/ford.jpg"/><figcaption>A man drives a bus in front of the Ford logo at the Ford India plant located in Chengalpattu, some 50km south of Chennai, India, 13 September 2021. <em>EPA-EFE/IDREES MOHAMMED/FILE</em></figcaption></figure></div><p>NEW YORK, United States - Ford said that inflation-related supplier costs during the third quarter will run about $1 billion higher than originally expected.</p><p>It also said at the end of the third quarter it expects to have 40,000 to 45,000 vehicles in inventory lacking certain parts because of supply chain issues.</p><p>Ford said it expects to deliver those vehicles in the fourth quarter and thus is sticking to its forecast for earnings before interest and taxes, its preferred performance indicator.</p><p>Ford shares were down nearly 5 percent on Wall Street in electronic trading after the closing bell.</p><p>It said the vehicles that are currently missing parts are mainly high-demand, high-margin models of popular trucks and SUVs.</p><p>Like other auto makers, Ford has been grappling since early 2021 with a shortage of computer chips, which are critical to modern vehicles.</p><p>General Motors finished the second quarter with nearly 95,000 vehicles that were missing certain parts. Its shares were down 1.5 percent after the warning from Ford.</p><p>Ford is scheduled to release definitive third quarter results on October 26.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/02/10/21/chip-shortage-puts-the-brakes-on-automakers">Chip shortage puts the brakes on automakers</a></li>	<li><a href="https://news.abs-cbn.com/business/11/03/21/chip-shortage-to-last-through-2022-semiconductors-exec">Chip shortage to last through 2022, says Arm chief executive</a></li>	<li><a href="https://news.abs-cbn.com/news/07/19/22/depleted-supply-of-beep-cards-anticipated-due-to-global-chip-shortage">Depleted supply of Beep cards anticipated due to global chip shortage</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe __idm_id__="2572289" allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1669453" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

Ford said that inflation-related supplier costs during the third quarter will run about $1 billion higher than originally expected.

Ford to spend $1-B more than expected on supplier costs

Ford to spend $1 billion more than expected on supplier costs | ABS-CBN

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Ford to spend $1 billion more than expected on supplier costs

Ford to spend $1 billion more than expected on supplier costs

Agence France-Presse

Published Sep 20, 2022 08:37 AM PHT

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Ford earnings

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