FORD said yesterday that inflation-related supplier costs during the third quarter will run about US$1 billion (RM4.53 billion) higher than originally expected.

It also said at the end of the third quarter it expects to have 40,000 to 45,000 vehicles in inventory lacking certain parts because of supply chain issues.

Ford said it expects to deliver those vehicles in the fourth quarter and thus is sticking to its forecast for earnings before interest and taxes, its preferred performance indicator.

Ford shares were down nearly 5% on Wall Street in electronic trading after the closing bell.

It said the vehicles that are currently missing parts are mainly high-demand, high-margin models of popular trucks and SUVs.

Like other automakers, Ford has been grappling since early 2021 with a shortage of computer chips, which are critical to modern vehicles.

General Motors finished the second quarter with nearly 95,000 vehicles that were missing certain parts. Its shares were down 1.5% after the warning from Ford.

Ford is scheduled to release definitive third quarter results on October 26. – AFP, September 20, 2022.