(JustPatriots.com)- Within three days of notifying Wall Street that it planned to spend $1 billion more than expected this quarter on supply chain costs, Ford Motor Company announced a reorganization of part of its executive leadership team that oversees supply chain management and product development while also adding even more Silicon Valley tech talent to the team.
Insufficiencies in the supply of parts cause production and delivery delays, which frustrate customers and discourage investment. Lots scattered across Dearborn and other cities are full of pickups waiting for details.
Ford, whose stock price has dropped due to the discouraging news, stated in a news release on Monday that these most recent leadership changes would “strengthen product creation and transform global supply chain management.”
In the press release, the corporation acknowledged that the current scenario is fluid while simultaneously stating that it is searching for a leader to manage the situation.
As the 119-year-old carmaker pushes farther towards electric vehicle (EV) production and digital connection, it has continued to recruit executives from high-profile Silicon Valley corporations.
Ford CEO Jim Farley issued the following statement:
“Developing and developing the next generation of electric and software-defined vehicles demands a distinct emphasis and mix of expertise from the accomplished Ford team and many interesting new colleagues joining our organization.”
In July, Annie Liu, a former executive at Tesla, was brought on board by Ford to assist with supply chain management.
According to Farley’s press release, Ford is modernizing its global supply chain management capability to support efficient and dependable procurement of components, internal development of essential technologies and capabilities, and “world-class cost and quality execution.”
According to Farley, the profit-generating Blue Ford gasoline-powered vehicle range that Ford offers, which includes the F-Series, Mustang, Ranger and Bronco, and Maverick, is still crucial to the company’s overall strategy since it has “generated considerable demand and market share increases.”
The automobile manufacturer shared the disheartening information on chip shortages and other problems on Monday. Ford stated in a press statement that it expects to have up to an estimated 40,000 to 45,000 partially-built vehicles held on lots in various cities waiting for parts by the end of September. On October 26th, the business will release the financial results for the third quarter.