Ford to start shipping Explorer SUVs with missing semiconductor chips
Ford Motor Co. is working to get dealers and customers their Ford Explorers sooner by shipping some units without rear-seat controls for heating, ventilation and air conditioning, a company spokesperson said Saturday. FreePress.
The driver will still be able to control the system from the front seat, Ford said.
The number of vehicles affected could not immediately be confirmed, but includes both pre-sold and dealer inventory, spokesman Said Deep said.
The Explorer’s rear-seat heating and air conditioning control, both the physical dial system and the semiconductor chip behind it, will be installed by Ford dealerships at a later date, Deep said.
The place in the car where the order will normally go will instead have a finished matching plate.
Customers will receive a price reduction if they take possession of a vehicle without this feature. Details of how much have not been confirmed, Deep said.
Andrew Frick, Ford’s vice president of U.S. and Canada sales, revealed news of plans to ship additional Ford vehicles without chips on Saturday during a meeting at the National Automotive Dealers Association’s annual show. (NADA) in Las Vegas. Automotive News first reported news from the meeting.
F-150 without start-stop
Last year, Ford began offering the ability to get F-150 pickups without the chip and components required for the start/stop feature, which allows the engine to shut off when the truck is stopped to save money. fuel, then to reignite when the brake is released.
Customers can still order their F-150 without the start-stop feature, which would include a $50 credit, Deep told the Free Press.
It’s all part of the automaker’s strategy to balance semiconductor chip challenges with the overall supply chain disruption caused by the pandemic over the past two years, in addition to the global conflict. It’s a global problem.
Ford has had significant challenges with dozens of its suppliers, which has resulted in plants temporarily closing and fewer units being built, Deep said.
The company is currently building and shipping vehicles to dealerships and will continue to do so as the parts supply system permits, he said.
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Ford told customers that the company is working to secure chips to deliver several thousand Bronco SUVs that have been held in Ford inventory lots in metro Detroit over the next 90 days.
Jeff King, vice president and general manager of Bozard Ford Lincoln in St. Augustine, Fla., told the Free Press that everyone in the auto industry is dealing with issues beyond their control. And buyers are clamoring for vehicles as industry-wide production cuts have limited overall supply.
But he said he felt confident after listening to Frick and Tim Hovik, chairman of the Ford National Dealer Council which serves as an advisory group on developing issues, speak at the meeting that the company has a plan to do this. which needs to be done. Hovik owns San Tan Ford in Gilbert, Arizona.
“I attended the meetings today and am extremely proud to be a Ford and Lincoln dealership,” King said Saturday. “I believe they are doing everything they can to deliver the products we need.”
While managing expectations is productive, some dealers have expressed frustration with the overall logistics and being able to sell the vehicles in a timely manner. Ford has faced intense criticism from Bronco buyers waiting for vehicles parked in storage areas.
Jeremy Zarfos, the COO of Bob Ruth Ford in Dillsburg, Pennsylvania, according to his LinkedIn professional profile, tweeted from the @JeremyZarfos1 account on Saturday, “I’m canceling 2022 from Ford. Everything we get as dealers will be nice but my expectations couldn’t be lower.”
Wall Street is watching
With just two weeks left in the first quarter, Ford prepares its earnings report in uncontrollable conditions that have crippled the entire auto industry worldwide. Wall Street analysts are watching closely, which affects the stock price.
This latest decision by Ford Explorer has a direct financial impact. This is a problem of counting vehicles as inventory or sales. Getting them to Ford dealerships and into the hands of customers as soon as possible, and that means without chips or other parts, results in recorded transactions.
“Keeping all vehicles in dealerships will increase their numbers. They’re looking to hit all numbers possible by the end of the first quarter,” said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. Free press late on Saturdays.
“General Motors has done it before with heated seats and Nissan has done it with navigation systems. You can do it when it’s not an essential part of the vehicle. It will be their attempt to salvage some numbers and gain ground on their competitors,” said Fiorani. “Ford has to either try to catch up or anticipate any issues that come up in the second quarter.”
Continued:Specialty chips have led to shortages and skyrocketing costs.
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This move to pull Ford vehicles out of stockyards and into dealerships couldn’t come soon enough, said Marcus Hudson, executive director of the Birmingham-based Calderone Advisory Group, which advises suppliers to the automotive industry.
“When you ship these vehicles, that equals revenue,” he told the Free Press. “I suspect they’re trying to please Wall Street and make sure they don’t miss any revenue or profitability numbers. You can’t have all that money tied up in stocks just sitting there.”
Ford said the reason for the shipment is now fundamental.
“We have customers waiting and we are doing everything we can to get their vehicles to them,” Deep said. “That’s what it’s all about. These are tough choices.”
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