Ford’s $1 Billion Inflation Expense Helps Explain Why Car Prices Are Going Up
The Wall Street Journal The Wall Street Journal
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 Published On Sep 30, 2022

Making cars was never an easy challenge for auto makers like Ford, GM and Lucid. But right now, supply-chain woes, parts shortages and inflation is making it even harder—and costlier.

Ford recently announced that thanks to inflation, it was spending an extra $1 billion, and that some 45,000 "high-margin" trucks and SUVs had been left without some crucial parts.

The company has even had trouble getting its famous blue oval badge for its popular F-Series pickup trucks, which is also holding up shipments. So is this a blip or are auto makers facing a new norm of higher manufacturing costs? And crucially, does this mean that cars are going to be more expensive?

0:00 It’s costing auto makers more to make cars, so will it cost you more to buy them?
00:54 From semiconductors to glass and carpet: What production issues are auto makers facing?
02:07 What are auto makers doing to address rising manufacturing costs?
03:22 And will car prices ever come back down?

I'm George Downs, a WSJ video journalist fascinated by how technology is changing how we get from A to B. If you're interested in the future of mobility or how modern transportation—from EVs to eVTOLs, and beyond— can impact our lives, then don't forget to subscribe.

#Ford #Inflation #SupplyChain

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