The auto industry continues to be heavily affected by the broken supply chains that have led to a global shortage of parts. On Monday, Ford announced that it expects to have between 40,000 and 45,000 unfinished vehicles, primarily, popular high-margin trucks and SUVs, in its inventory by the end of September. That’s more than double the amount of uncompleted vehicles that Ford had in its inventory at around 18,000 cars at the end of the second quarter in June.
Shortages mean the number of Ford vehicles built without certain parts will be higher than planned in the third quarter that ends this month. However, the Blue Oval stated that this is a temporary setback as it believes that these “vehicles on wheels” will be completed and sold to dealers during the fourth quarter.
Ford expects its full-year 2022 adjusted earnings before interest and taxes to sit somewhere between $11.5 billion and $12.5 billion. The car manufacturer notes that its earnings will come despite limits on the availability of certain parts, in addition to the higher payments made to suppliers to account for ongoing inflationary pressures.
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Ford says it will likely end the third quarter with adjusted earnings before interest and taxes of between $1.4 billion and $1.7 billion, a drop from the $3 billion in adjusted earnings that it earned in the same quarter last year. It notes that inflation-related supplier costs throughout the quarter have cost it $1 billion more than anticipated.
The automaker will announce its full third-quarter 2022 financial results on October 26.
Details about Ford’s latest expected financial results come shortly after it lifted the veil on the 2024 Transit, available with EcoBlue diesel, plug-in hybrid, and all-electric powertrains. The electric version is arguably of the most importance to Ford and features a 74 kWh battery pack providing juice to a 214 hp and 306 lb-ft (415 Nm) electric motor. It has a claimed WLTP range of 236 miles (380 km).
