This week, Ford Motor reported that its sales had increased by 16% compared with the previous year. However, it also noted a decline in September. Ford sold 142,644 vehicles last month, a decrease of 8.9% on the same period in 2021.
The automaker’s stock rose by 7% this Tuesday. The demand for new vehicles is strong, despite rising consumer costs and the threat of a recession. However, supply chain issues continue to plague the auto industry, creating hold-ups on vehicle orders. Major car components, such as semiconductors and wire harnesses, as well as smaller parts, continue to be difficult to source.
Some companies are now lowering their new vehicle sales forecasts due to supply chain constraints. Despite reporting a sales increase in Q3, Ford’s sales were down by around 4% compared to Q2 this year. The automaker highlighted the negative effect that ongoing supply chain issues were having on sales, with parts shortages affecting between 40,000 and 45,000 vehicles. This has had a knock-on effect on Ford’s unexpected supplier costs, adding around $1 billion in the third quarter.
Ford’s electric vehicle (EV) business is booming as consumers look to shift their purchasing habits to be more sustainable. EV sales stood at 41,200 units through September. The firm’s most popular EV is the Mustang Mach-E crossover, with sales increasing by 49% compared to 2021.