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Ford Motor Company F recently warned that parts/component shortages, primarily other than semiconductors, will lead to a buildup of 40,000 to 45,000 vehicles in inventory at the end of the third quarter. The announcement led to a sharp sell-off in the automaker’s shares.
It has now emerged that the company is now constrained by the shortage of the blue oval badges that go with its vehicles as a brand identifier, the Wall Street Journal said. This shortage is affecting deliveries of some of the vehicles, including its best-selling F-150 pickup trucks, the report added.
Ford reportedly has tried some workarounds, including the use of 3D printing to create the insignia as a stop-gap arrangement. The report suggested it isn’t yet clear whether the inventory buildup the company warned about this week was caused by the badge shortages.
Automakers are currently facing shortages of components, and are forced to build vehicles without semiconductors and then park them until the chips could be sourced, the report said. This has led to the piling up of tens and thousands of cars and trucks at airport lots and near assembly plants in the South and the Midwest, it added.
Ford closed Friday’s session at $12.31, down 3.60%, according to Benzinga Pro data.
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Image and article originally from www.benzinga.com. Read the original article here.