Passage DETROIT – Ford Motor warned investors on Monday that the company expects to incur an additional $1 billion in costs in the third quarter due to inflation and supply chain issues. Ford said supply problems have led to parts shortages affecting about 40,000 to 45,000 vehicles, largely high-margin trucks and SUVs, that have been unable to reach dealers. The company expects to complete and deliver the vehicles to dealers in the fourth quarter and continues to forecast adjusted earnings before interest and taxes for 2022 between $11.5 billion and $12.5 billion. The company’s shares fell about 5% in extended trading after the update. Ford said that based on recent negotiations, inflation-related supplier costs during the third quarter will be about $1 billion higher than originally expected. The automaker expects adjusted third-quarter earnings before interest and taxes to range from $1.4 billion to $1.7 billion. The company said executives will “give more dimension on full-year performance expectations” when the automaker reports its third-quarter results on Oct. 26. Automakers have been battling supply chain issues since the coronavirus pandemic halted production in early 2020. Demand has continued to be strong, followed by ongoing problems with the availability of components, specifically semiconductor chips. Ford’s biggest rival, General Motors, announced similar issues earlier this year. GM on July 1 warned investors that supply chain problems would hurt second-quarter earnings as it had about 95,000 vehicles in its inventory that were built without certain parts. GM at the time also confirmed its annual guidance and said it expected “substantially all of these vehicles” to be completed and sold to dealers before the end of 2022.
