Analysts were surprised by Ford’s Q3 pre-announcement, especially as Ford appeared to have weathered supply chain problems. Ford cited recent negotiations resulting in inflation-related supplier costs that will run about $1 billion higher than initially expected. Nevertheless, Ford maintained its full-year guidance.
Worse, Ford warned that roughly 50,000 vehicles are affected by parts shortages and kept in overflow parking lots awaiting the missing parts. These are primarily high-margin vehicles that haven’t been able to reach dealers. Ford says they will be completed and sent to customers in the fourth quarter.
Analysts scramble to find out whether this is a Ford-specific problem or an indication of an industry-wide problem to come. According to CNBC, GM’s CEO Mary Barra was confident that the company’s supply chain problems have been easing. Nevertheless, GM has even more unfinished vehicles in its inventories than Ford. Barra says that GM will have up to 95,000 units manufactured without certain components by the end of the year due to supply chain problems.