Ford is still getting battered by product shortages as supply chain issues continue to undermine the auto industry.
By the numbers: Ford’s stock fell 12.3% Tuesday after the company said late Monday that it expects to have 40,000–45,000 cars nearly finished but lacking crucial parts at the end of the third quarter.
- In pre-pandemic times, automakers typically did not have to park unfinished cars in large quantities while waiting for parts.
Details: The shortages are affecting “largely high-margin trucks and SUVs,” Ford said.
- And inflation pulsing through the supply chain is expected to cost the company $1 billion more than previous expected, it added.
The bottom line: “While we have been hearing … about the marginal improvement of the supply chain, Ford’s announcement shows that we are not yet out of the woods,” Morgan Stanley analyst Adam Jonas wrote in a research note.
