Yahoo Finance Live reports on Ford's outlook for restructuring its global supply chain.
- Ford today announcing plans to restructure its global supply chain. The news comes days after the company said it reported roughly $1 billion in unexpected supplier costs for the third quarter, and a likely inventory build-up of 45,000 cars that lack certain parts. Yeah, this is the stuff we heard of a year-plus ago. That resulted in Ford's worst one-day stock performance in 11 years. The restructuring will be led by the CFO, John Lawler, until a chief supply chain officer is selected.
Now big picture, this is all part of CEO Jim Farley's Ford plus plan for growth and value acceleration. Ford shares have been hammered hard this year, down 40 plus percent year-to-date. And today, they have bounced back from those losses, but still down a couple of points. So it's that turnaround plan that they are gaining on a big transition to EVs. May take a little bit, Rochelle.
But, I mean, imagine having those thousands of cars. But because of supply chain challenges, not being able to actually get them into the hands of consumers. I can't imagine how frustrating that must be, and it just goes to show that these supply chain challenges are a little bit. Obviously, inflation has taken the front row to all this, but still working their way through the system here and certainly not a help for Ford at the moment. Seana.
- Yeah, and we could also see some of the concern ripple throughout the auto sector after we got this news from Ford, right? GM closing down yesterday. They were off almost 6%. So supply chain issues have been a huge issue for automakers since the start of the pandemic, and it looks like these companies have a ways to go until we get back to those normal levels.
- Yeesh, still not out of the supply chain woods.