Ford warns investors of an extra $1 billion in supply chain costs during the third quarter

DETROIT – Ford Motor connected Monday warned investors that the institution expects to incur $1 cardinal much successful costs than antecedently expected during the 3rd 4th owed to ostentation and proviso concatenation issues.

Ford said proviso problems person resulted successful parts shortages affecting astir 40,000 to 45,000 vehicles, mostly high-margin trucks and SUVs, that haven't been capable to scope dealers.

The institution expects to implicit and present the vehicles to dealers successful the 4th fourth and is inactive projecting 2022 adjusted net earlier involvement and taxes of betwixt $11.5 cardinal to $12.5 billion.

Shares of the institution fell astir 5% successful extended trading pursuing the update.

Ford said based connected caller negotiations, inflation-related supplier costs during the 3rd 4th volition tally astir $1 cardinal higher than primitively expected.

The automaker anticipates third-quarter adjusted net earlier involvement and taxes to beryllium successful the scope of $1.4 cardinal to $1.7 billion.

The institution said executives volition "provide much magnitude astir expectations for full-year performance" erstwhile the automaker reports its third-quarter results connected Oct. 26.

Automakers person been battling proviso concatenation problems since the coronavirus pandemic brought manufacturing to a standstill successful aboriginal 2020. Demand continued to beryllium strong, followed by ongoing issues with the availability of parts, specifically, semiconductor chips.

Ford's largest crosstown rival, General Motors, announced akin issues earlier this year. GM connected July 1 warned investors that proviso concatenation issues would interaction its second-quarter earnings, arsenic it had astir 95,000 vehicles successful its inventory that were manufactured without definite components.

GM astatine the clip besides reconfirmed its yearly guidance and said it expects that "substantially each of these vehicles" volition beryllium completed and sold to dealers earlier the extremity of 2022.