DEARBORN – Days after the company warned it anticipates recording an additional $1 billion in unforeseen supplier expenses during the third quarter, Ford Motor unveiled measures on Thursday to overhaul its worldwide supply chain.
The manufacturer stated in a release that the supply chain restructure will “enable efficient and dependable component sourcing, internal development of critical technologies and capabilities, and world-class cost and quality execution.”
John Lawler, the chief financial officer of Ford, will serve as the project’s temporary leader while the company chooses a candidate to fill the newly established chief supply chain officer post.
Lawler is taking over at a time when the coronavirus pandemic is driving up the cost of parts and raw materials for automakers and suppliers. The gains have taken place in the midst of serious supply chain issues, such as a persistent global scarcity of essential semiconductor chips.
Ford announced on Monday that as a result of recent negotiations, third-quarter supplier prices related to inflation were $1 billion higher than initially anticipated. The disclosure led to Ford’s stock having its worst day in more than 11 years, which included a pre-release of some earnings estimates.
According to Ford spokesman T.R. Reid, the restructure is not directly related to the automaker’s announcement earlier this week. In light of the industry’s supply chain issues, he claimed that Ford has been making improvements to its supply chain for some time its shift to electric vehicles.
As we’ve already stated, there is still space for development in this area, he said.
According to Ford, Jonathan Jennings, vice president of supply chain, will now also be responsible for technical support and supplier quality. Lawler will receive his report.
Additional management appointments and changes pertaining to electric vehicles, product development, and other divisions of the business were also disclosed along with the supply chain plans.
The “Ford+ plan for development and value creation,” according to Ford CEO Jim Farley, is being expedited by the modifications.