Ford’s sales slid by 10% in October 2022 due to supply chain problems that caused delayed shipments. The auto giants reported sales for the month were almost 158,327 which was down from 176,000 reported in October of 2021. It was the second month of decline. Previously sales had held in the double digits despite semiconductor shortages.
The October sales for Ford were lower than others in the auto industry. Auto sales overall decreased by 9.1% compared to last year. Reports showed that 1.2 million vehicles were sold.
The decline was due in part to the unusual supply chain problems. The automaker has run into considerable problems with the blue oval badges which have impacted the sales of SUVs and pickup trucks. Ford had 40,000 vehicles waiting for parts when the third quarter ended. The auto manufacturer announced that it hopes to complete the vehicles and send them out to dealers before 2023.
In an interview, Ford’s vice president of sales, distribution and trucks Andrew Frick stated that Ford, “continues to see strong demand for its vehicles” even with the steady increase in interest rates
Ford’s F-series pickups sales slipped by 17.4% compared to October of 2021 which is one of the main contributing factors to the 13% decline. The auto manufacturer did sell 11,196 electric F-150 Lightning trucks through October and the previous month they sold 2,436.
The automaker’s all-electric vehicle sales reached 47,500 units which accounted for 3% of their overall sales. Interestingly, the Mustang Mach-E crossovers accounted for 44% compared to the previous year.
The sale of Ford’s luxury vehicles also decreased. The automaker’s Lincoln brand sold 1.54 million in October which was 2/2% lower than the previous year.
A week before Ford reported their slump in October sales, the automaker also reported a loss of $827 million in the third quarter due to supply chain problems. Another factor was the costs involved in discontinuing the Argo AI.
Ford’s adjusted earnings are forecast to be around $11.5 billion which is lower than what was previously forecast.
Even two years after the Covid-19 pandemic, the supply chain continues to struggle. Despite making record profits, logistic companies are still experiencing slowdowns and roadblocks in providing parts and other necessities to automakers such as Ford and many other businesses.
