Ford Stock Plummets as Supply Chain Issues, Inflation Cost Company $1 Billion

SHARE
TWEET
Ford Stock Plummets as Supply Chain Issues, Inflation Cost Company $1 Billion

The Ford Motor Company’s stock plummeted on Tuesday amid ongoing supply chain and inflation issues, reportedly costing the company $1 billion.

The news raises questions about whether supply chain issues persist.

Ford’s stock (F: NYSE) opened at $14.11 on Tuesday but dropped to $13.38 an hour later.

The Dearborn automaker’s stock closed the day at $13.09.

Ford was forced to place 40,000 to 45,000 high-margin and high-demand trucks and SUVs in inventory at the end of the third quarter due to being unable to obtain proper parts because of a supply shortage.

Ford added that rampant inflation has made it expensive to purchase specific parts.

Ford adjusted their third-quarter earnings before interest and taxes (EBIT) between $1.4 to $1.7 billion – much lower than Wall Street estimations of $3 billion, Yahoo Finance reported.

RELATED: Biden’s ‘Green’ Lithium Production ‘Just as Bad as Fossil Fuels,’ Experts Say

CFRA analyst Garrett Nelson via MarketWatch said Ford’s announcement likely indicates that “auto parts shortages and supply-chain issues are still ongoing.”

In the second quarter, Ford’s rival General Motors (GM) also faced problems, as 95,000 vehicles were in inventory due to a shortage of components, according to CNBC.

GM also told investors that it expects all the vehicles to be ready to sell to dealers at the end of 2022.

As we reported in August, Ford said it could lay off approximately 3,000 workers to save money while it ‘transitions’ to electric vehicles.

As Wall Street Journal reported, the company’s internal email to employees announced it would begin notifying the affected salaried and agency workers in the next few days.

“The workforce reduction mostly targets employees in the U.S., Canada and India. About 2,000 of the targeted cuts will be salaried jobs at the Dearborn, Mich., auto maker. The remaining 1,000 employees are working in contract positions with outside agencies, the company said,” the article continued.

The email also said the company was changing to embrace updated technologies.

Chief Executive Jim Farley said Ford had too many employees “and that the existing workforce doesn’t have the expertise needed to transition to a portfolio of electric, software-laden vehicles.”

NOTICE: Our comment section is currently disabled due to malicious attacks preventing our readers being able to comment properly. We are in the process are implementing a new system which will be live soon! Sorry for any inconvenience!

SHARE
TWEET
Telegram
Email
Reddit
Subscribe
Notify of
guest
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
average joe
average joe
1 year ago

just call it what it is, no one wants electric c**p

Ragnor Lothbrok
Ragnor Lothbrok
1 year ago

Couldn’t be because they’ve gone almost in on EVs and are trying to cram them down our throats….could it? I wonder if Soros and his ilk are going to step up and fund Ford like they’re doing Disney, MSNBC, CNN, Wal-Mart and a whole slew of other “woke” and going broke companies?

Breaking

Trending

Reports Emerge of Drivers Becoming 'Sick' While Driving Electric Vehicles
Reports Emerge of Drivers Becoming 'Sick' While Driving Electric Vehicles
Electric vehicle drivers and their passengers are falling sick according to experts, who say the lack...
'The View' Hosts Implode as They Realize Alvin Bragg's Trial Is Helping Trump
'The View' Hosts Implode as They Realize Alvin Bragg's Trial Is Helping Trump - WATCH
ABC’s “The View” co-hosts have only just begun to realize the Manhattan DA Alvin Bragg‘s...
Teacher Fired after Refusing to Use Preferred Pronouns Wins $360,000 Settlement
Teacher Fired after Refusing to Use Preferred Pronouns Wins $360,000 Settlement
A former high school teacher who was terminated for refusing to use students’ preferred pronouns...
Don Lemon Reveals Grim News as He Hit Rock Botton in Major Career Failure
Don Lemon Reveals Grim News as He Hits Rock Botton in Major Career Failure
Former CNN, anchor Don Lemon, is facing more setbacks after Elon Musk cut short his doomed venture into...
Rumble Sues Google for over $1 Billion for Ad Monopoly Abuse
Rumble Sues Google for over $1 Billion for Ad Monopoly Abuse
Search giant Google is facing a $1 billion lawsuit from Rumble for illegally leveraging its technological...
Leftists Triggered after Trump Calls for Child Sex Traffickers to Get Death Penalty
Leftists Triggered after Trump Calls for Child Sex Traffickers to Get Death Penalty
Leftist news outlet The Huffington Post responded angrily to Donald Trump’s suggestion that drug...
Son of New Zealand MP Dies Suddenly at 22
Son of New Zealand MP Dies Suddenly at 22
ACT MP Mark Cameron announced the death of his Son Brody, 22, after he died unexpectedly, sparking an...
Melinda Gates Resigns from The Bill and Melinda Gates Foundation
Melinda Gates Resigns from The Bill and Melinda Gates Foundation
Melinda French Gates announced she is resigning from the Bill and Melinda Gates Foundation, the philanthropic...
Pelosi Warns Against Biden Debating Trump as Handler Issue 'List of Demands'
Pelosi Warns Against Biden Debating Trump as Handlers Issue 'List of Demands'
Former House Speaker Nancy Pelosi said she would not recommend that Joe Biden debate President Donald...
Rapper, 17, Accidentally Shoots Himself in the Head While Filming TikTok Video
Rapper, 17, Accidentally Shoots Himself in the Head While Filming TikTok Video
A teenage rapper from Virginia has fatally shot himself as he played with a gun while filming a TikTok...
2
0
What are your thoughts? Click to commentx
()
x

JOIN THE FIGHT!

SIGN UP FOR OUR FREE BREAKING NEWSLETTER STRAIGHT TO YOUR INBOX! 

We don’t spam! Read our Privacy Policy for more info.