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Ford Overhauls Its Supply Chain Following Appalling Q3 Results That Crashed Its Stock

Ford announced disappointing results for Q3 2022 in its investor guidance, with the supply chain costs running $1 billion more than expected. This has caused Ford stock to tank, but fear not, CEO Jim Farley is at it with an overhaul of the supply chain operations.
Ford overhauls its supply chain following appalling Q3 results that crashed its stock 7 photos
Photo: Ford
Ford overhauls its supply chain following appalling Q3 results that crashed its stockFord overhauls its supply chain following appalling Q3 results that crashed its stockFord overhauls its supply chain following appalling Q3 results that crashed its stockFord overhauls its supply chain following appalling Q3 results that crashed its stockFord overhauls its supply chain following appalling Q3 results that crashed its stockFord overhauls its supply chain following appalling Q3 results that crashed its stock
It’s fair to say that the Q3 guidance did not go well for Ford management, especially after seeing the company’s shares crashing hours after the announcement. Ford CEO Jim Farley acted quickly and announced plans to restructure its global supply chain. This happened on Thursday, two days after the Dearborn automaker said it incurred an extra $1 billion in unexpected supplier costs during the third quarter.

According to Ford’s announcement, CFO John Lawler is now in charge of the makeover of Ford’s global supply chain operations on an interim basis until a chief global supply chain officer is selected. Jonathan Jennings, Ford’s vice president of the supply chain, will take on additional responsibilities for supplier technical assistance and quality. The changes aim to “support efficient and reliable sourcing of components, internal development of key technologies and capabilities, and world-class cost and quality execution,” according to Ford.

Even so, Ford declines that the change is directly related to the Q3 guidance released on Monday. In fact, the changes have been brewing for a long time. They have been accelerated by supply chain problems and the shift to electric vehicles. Along with supply chain operations, Ford also altered the executive structure, which Ford says is part of accelerating Jim Farley’s Ford+ plan for growth and value creation.

Doug Field, who was chief advanced technology and embedded systems officer, has been advanced as the chief advanced product development and technology officer. In addition to his current duties overseeing EVs and software, he will also be in charge of design and vehicle hardware engineering. Another change is naming Lisa Drake, vice president of EV industrialization, in charge of manufacturing engineering. Also, Chuck Gray, who has been Ford’s vice president of EV technology, is now vice president of vehicle hardware engineering.

“As we enter an intense period of execution for Ford Model e and our $50 billion investment in breakthrough electric and digital vehicles, Doug, Lisa, and Chuck are taking on larger roles and building out very capable teams,” Ford CEO Jim Farley said in a statement. “Developing and scaling the next generation of electric and software-defined vehicles requires a different focus and mix of talent from the accomplished Ford team and many exciting new colleagues joining our company.”

Additionally, Ford said it has hired four executives “with Silicon Valley credentials.” Roz Ho, former vice president and global head of software at HP, will become Ford’s chief connected vehicle software officer. He will work closely with Jae Park, who was hired as vice president of digital product design after stints at Google and Amazon. Sammy Omary, coming from Motional, will be Ford’s executive director of advanced driver assist technologies. At the same time, Rob Bedichek, who previously worked at Intel and Apple, was named executive director of platform architecture.
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About the author: Cristian Agatie
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After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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