Ford Motor: U.S. sales are expected to drop 12% in 2022, and production has been reduced by 100,000 vehicles

Ford Motor: U.S. sales are expected to drop 12% in 2022, and production has been reduced by 100,000 vehicles

Ford Motor Co. management told dealers over the weekend that they now expect U.S. deliveries to be 1.66 million vehicles this year, down 12% from 1.9 million in 2021, according to people familiar with the matter. Ford has already cut production by about 100,000 vehicles this year after 37 suppliers failed to deliver parts on time, the sources said.

Shortages of components such as chips have hit Ford and other automakers, and the latest news suggests that the supply constraints will not ease in the short term. Ford reported earnings below analyst expectations last month and warned that the company may get off to a slow start in 2022 due to supply chain issues.

Ford also told dealers they won't receive any new vehicles until the end of May, leaving showrooms empty for the spring selling season.

In addition, due to parts shortages, Ford plans to deliver and sell incompletely assembled vehicles that are missing semiconductors or related components that control non-safety-critical functions, according to Automotive News.

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