This is because of a continued shortage of computer chips and other components
These vehicles are mostly SUVs and pickups
The company says delays and increased component prices could cost it $1 billion this year
Ford recently said it currently has between 40,000 and 45,000 vehicles sitting unfinished around its various assembly plants due to a persisting supply chain crisis.
Since the beginning of the pandemic, when vehicle production almost came to a halt for a month or two, many companies that made the computer chips used by the automotive industry have moved to make more profitable chips that are used in products such as cell phones.
This has led to a serious shortage of components once the production of vehicles picked back up to its pre-pandemic level and the situation still hasn’t improved enough to cope with the demand for new vehicles.
This is why Ford is having to produce incomplete vehicles that need to wait around the factories until their missing parts can be sourced.
According to the automaker, those almost 45,000 vehicles are mostly large SUVs and pickup trucks, which are some of its most popular products.
Since these vehicles are also some of its most profitable, the company says it is still on track to meet its financial targets for the year despite the added costs caused by the shortage.
This is surprising considering the costs linked to the delays and the increased price of the missing components are expected to add $1 billion to the automaker’s expenses in 2022.
The continued shortage is bad news for buyers looking for a new vehicle since the reduced availability is pushing dealers to increase their prices, sometimes much higher than the MSRP.
In addition, many economists agree that a recession will arrive sometime in 2023, which could create additional problems for the auto industry.