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Thndr Claps » U.S. Claps » Automotive 🚗 » Ford wary of increasing costs 🚙

Ford wary of increasing costs 🚙

by Omar El Shorafa
September 20, 2022
Ford, Claps, NYSE

The Clap
Ford (NYSE: F) expects a $1 billion increase in costs during Q3 2022 due to supply chain shortages and inflation.

The Deets
According to Ford, supplier costs increased due to inflation and will be much higher than expected initially.

The pandemic sparked a struggle with supply chain issues in the automotive industry as production was almost completely halted. Shortages of parts continue to affect the industry to this day.

Why this Matters
Following the news, Ford’s stock price dropped by around 5% in extended trading.

What Now
The company will provide more guidance regarding the coming quarters when it reports Q3 earnings in October.

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