The war in Ukraine is the latest in a series of obstacles that have hobbled automakers’ progress as they struggle to keep up with hot demand for new vehicles. That demand is hot is good news, of course, but starting with the pandemic, and then the supply-chain issues that have affected carmakers’ ability to get their hands on microchips and other components, the post year has been a challenging one as buyers continue to be faced with long delays in getting their purchase delivered.
All of this as automakers continue their large-scale, and very costly, transition to electric mobility.
Automotive News reports that Ford is currently dealing with delivery delays from 37 different suppliers. The accumulated shortages have meant that the automaker has produced 100,000 fewer vehicles than planned in recent months. At this weekend’s annual National Automobile Dealers Association’s (NADA) convention in Las Vegas, Ford warned dealers to expect fewer deliveries of vehicles than ordered at least until the beginning of June.
One workaround Ford is using – and we’ve seen this before from other manufacturers – is to deliver vehicles incomplete, with certain features and systems missing. Some 2022 Explorer SUVs, for one, will be delivered to customers without rear-seat heating; in a few months, when Ford receives the needed components, it will install them in those vehicles.
This is seen as a preferred solution, when feasible, to accumulating vehicles in holding pens, as we saw recently with the Ford Bronco. The Detroit Free Press reports that Ford will offer affected buyers/owners a type of credit, similar to what it did in the case of F-150 pickups that were delivered without the advertised start/stop feature.
Not surprisingly, Ford sales are down this year (by 11 percent in the U.S., for example), this even though consumer demand is undeniably strong and has been for the past year.
Current best predictions by industry analysts have the microchip shortage and larger supply-chain problems persisting into the second half of this year, with some specific issues continuing into 2023. The ongoing situation in Ukraine could worsen even that pessimistic outlook however, especially since the country is one of the world’s larger producers of lithium.