[ad_1]
Ford CEO Jim Farley at the company’s Dearborn, Michigan, plant where it builds the electric F-150 Lightning on April 26, 2022.
CNBC | Michael Wayland
DETROIT – Ford Motor on Thursday announced plans to restructure its global supply chain, days after the company said it expected to book an extra $1 billion in unexpected supplier costs in the third quarter.
The supply chain restructuring aims to “support efficient and reliable procurement of parts, internal development of core technologies and capabilities, and world-class cost and quality execution,” the automaker said in a release.
The effort will be led on an interim basis by Ford Chief Financial Officer John Lawler until the company selects someone to fill the newly created chief supply chain officer position. position.
Lawler comes at a time when parts and raw materials are increasing for automakers and suppliers during the coronavirus pandemic. The increases come amid severe supply chain problems, including a persistent global shortage of essential semiconductor chips.
On Monday, Ford said recent negotiations resulted in inflation-related supplier costs running $1 billion higher than previously expected in the third quarter. The announcement, including a pre-release of some earnings expectations, caused Ford stock to have its worst day in more than 11 years.
The restructuring is not directly connected to the automaker’s announcement earlier this week, according to Ford spokesman TR Reid. He said changes to Ford’s supply chain have been underway for some time amid problems with the industry’s supply chain and its shift to electric vehicles.
“As we’ve acknowledged before, this is an area we got better, and there’s still additional room for improvement,” he said.
Jonathan Jennings, Ford vice president of supply chain, will also have additional responsibility for technical assistance and supplier quality, the company said. He will report to Lawler.
The supply chain plans were announced in addition to additional executive changes and appointments involving electric vehicles, product development and other areas of the company.
Ford said the changes are an acceleration of CEO Jim Farley’s “Ford+ plan for growth and value creation.”
[ad_2]
Source link
