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Ford CEO Jim Farley Says Supply Chain Issues Are Here To Stay

Ford – like all automakers – has faced its fair share of supply chain issues over the past two-plus years as inventory remains low, even though some improvements are expected in the coming months. Those problems are quite evident, as a large number of Ford F-Series trucks and Blue Oval SUVs are sitting around awaiting parts, virtually every 2023 Ford Maverick option is supply constrained, V8 engine production is facing challenges, new product launches are being delayed, and it’s all having a negative impact on the automaker’s sales, too. However, while we’d like to think that there’s a light at the end of the proverbial tunnel, Ford CEO Jim Farley isn’t quite as optimistic, as he recently revealed in an interview with Yahoo Finance.

“I have stopped forecasting,” Jim Farley said in regards to when he believes these issues might end. “I mean, bottom line is we think it’s going to happen continuing in the foreseeable future. I think we’re very good at dealing with these now. We’re gotten better and better, more efficient in helping our suppliers find labor, whatever it takes. It does feel like Whac-A-Mole, but we’re getting better at doing that.”

“And I guess I think we should kind of count on this happening for some time. I don’t think the labor market’s going to ease any time soon. It has a big impact on us, so we’re kind of running our business now and have developed a bit of a rhythm around this challenges that we’re seeing. And I think it’s going to extend way into next year. Does it end at next year or year after or halfway through? I don’t know. I don’t think we should count on any of that.”

2022 Ford F-150 Lightning

What began as the semiconductor chip shortage has seemingly expanded into a variety of areas, as suppliers continue to have a hard time hiring enough workers to meet demand. Farley pointed to this issue, in particular, as to why suppliers aren’t able to ship much-needed parts. Combined with various other supply chain issues, this is clearly a complex problem with no easy solution, hence Farley’s bearish take on the situation.

We’ll have more on current supply chain constraints soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Crabbymilton

    Obviously he’s a Democrat. Doesn’t want to push to build things here so FORD gets what it deserves.

    Reply
    1. Robert.Walter

      What nonsense are you talking?

      The vast majority of fords investments are in the USA.

      Reply
      1. Crabbymilton

        Then why is he sticking his thumb up his butt essentially saying that they can’t build the products? If these parts were sourced here, this would hardly be an issue.

        Reply
        1. Robert.Walter

          More bias amplified nonsense.

          While some production limitations are undoubtedly due to offshore production, you read here just within the past week that deliveries on certain F-series were being held due to shortages of even the Ford logo grille jewelry; a part produced in SE Michigan.

          Producing every part in the US wouldn’t guarantee delivery but it would guarantee higher costs as there would undoubtedly be duplications in the supply chain requiring more CAPEX and higher operating costs.

          For the responder below, it probably is worth noting that the unreliable toxic polluting badge supplier, is owned by a hedge fund these last few troublesome years.

          Reply
          1. Rick V

            So basically what your saying is the progressive liberals are running this country in to the ground like they are the rest of them. Got it 👍

            Reply
          2. Crabbymilton

            If a contractor/tradesmen is buying a standard work version of the F150, why would he care or have need for some silly badges? Not at all excusing this but is it the end of the world if your truck doesn’t have a useless badge or logo when it may be perfectly useable otherwise?

            Reply
      2. Mike says..

        We used to build a lot of things here….. then better, faster and cheaper beat us at our own game. US manufacturing is in decline and it’s a homemade problem. At least Farley talks about it. If FORD did not have him at the helm, we might not have FORD at all.

        Reply
        1. Rick V

          I don’t know Mike. I think he is going to eventually bankrupt it. Too much emphasis on EV production trying to make a name for himself.

          Reply
          1. Robert.Walter

            LoL he’s already got a name, he already had it at Toyota before he came to Ford.

            If he hadn’t come to Ford he’d be running Toyota USA by now.

            Reply
    2. RichG

      You sound like a miserable human being.

      Among other dumb and ridiculous comments, the one you made about Ford vehicles not needing the blue oval logo is laugh-out-loud stuff. I mean, you have no idea what you’re talking about.

      I imagine you have a lot of “thoughts” on the “stolen” election, too. Enjoy your cult.

      Reply
      1. Crabbymilton

        Hey FORD can’t get their things together so don’t get mad at me. Obviously your a Democrat given those talking points. Did I say it was good that they can’t get the proper badge and related items? If the trucks are in drivable condition, then why not sell them without? Better than just sitting in a parking lot somewhere.
        I don’t consider myself a miserable human being. You must be if you can’t bring yourself to be open to other builders to fill your vehicle needs instead of a FORD cult member.

        Reply
      2. Crabbymilton

        p.s.

        UPS usually removes or omits the badging on their trucks. Guess what, they work just fine.

        Reply
      3. Bobby C.

        I owned two Ford F150 Raptor’s a 2018 and a 2020 and neither had a blue oval. If a company as large as Ford cannot make their own emblems then maybe they should reevaluate their business model.

        Reply
        1. Robert.Walter

          Please show me an OEM which makes their own emblems.

          Seems like you know zilch about business models too.

          Reply
          1. Crabbymilton

            Is is on FORD if they can’t chose competent suppliers. One of my lawnmowers has a BRIGGS @ STRATTON engine. The place where the logo belongs is missing. Guess what it works perfectly anyway. If people who buy an F150 don’t know it was built by FORD then they really have a problem.

            Reply
      4. Super Dave

        Easy to spot a liberal. Always resort to slander because of very low IQ. That limitation makes proper research unattainable. To say the election wasn’t stolen proves excessive ignorance and lazyness. Enjoy your communist agenda.

        Reply
        1. Crabbymilton

          Yes FORD management seems to embrace the Biden administration don’t they?

          Reply
  2. David Dickinson II

    I have to call BS on Mr. Farley. Ford has done much worse that its competitors with the supply chain, which is reflected in Ford’s 55% stock price drop since January. Every article I read about automotive supply chains highlights Ford as the poster child of bad things. At first, I thought Ford may have been intentionally throttling production to boost profits, but they are taking so much heat over this subject and have lost half their market cap, so I’m now inclined to believe it is incompetence and/or really bad execution.

    Reply
    1. Robert.Walter

      “I was wrong about my conspiracy-fueled wild guess, so please believe in my new wild guess evaluation of this complex topic.”

      Reply
    2. Bill S

      With the exception of the F-150 nearly every part on a Ford is made in Mexico, Spain, Taiwan, China, Japan, Germany etc. I’ve worked as a salesman for Ford over 20 years and laugh when I see the window sticker and where 99% are made elsewhere including Final assembly in Canada for the F-150. What makes Ford a US Company is a portion of the profits stay in the USA

      Reply
      1. The Gentle Grizzly

        You left out they have a US mailing address.

        Reply
  3. JoeC

    Usually if Plan A does not work, you go to Plan B. If Plan B does not work, you go to Plan C etc. Looks like Ford is accepting defeat instead of getting creative to find a way to get the job done. Stockholders should be furious and demand change. You can accomplish anything “if you only had a brain….”

    Reply
  4. Michael

    I have been waiting for years, to get the Ford I wanted, and it is still not available, and won’t be for years. So time to move on to another manufacturer, that has what I want.

    Reply
  5. crabbymilton

    Exactly Michael. There’s a heck of a lot of freedom when you take a generic approach and not worry about being stuck on one builder.

    Reply
  6. Norm

    I also have been waiting to buy a new Ford and it looks like it will never be made. Time to switch to another brand. Ford also seams to have raised prices higher than most.

    Reply
  7. Robert Arthur

    If you can’t find suppliers to meet the needs of your customers Mr. Farley, then maybe you should take a lesson from Henry Ford and do some vertical integration!

    Reply
    1. Robert.Walter

      Ford nearly went broke due to excessive vertical integration of non core commodities.

      Henry’s model only worked then because there were not multiple supplier organizations with better know how and processes at that time.

      It’s been a good 60+ years since that was highly profitable and 30-40 years since fully viable.

      Farley’s taking his lesson from Steve Jobs. That’s one reason why electric motors and batteries will be built in Ford plants. But you probably missed that.

      Reply
  8. Jack

    1. Who’s feeding the people who can’t be bothered to show up for work?
    2. Where’s the WW2-level commitment to get the job done, in Govt as well as Industry?

    Reply
    1. Robert.Walter

      Where’s WW2?

      Reply
  9. Rick V

    Virtually every time this man opens his mouth Ford stock takes a hit.

    Reply
    1. Robert.Walter

      You do realize he’s legally obligated to reveal these things. If he held these things back to long or materially misrepresented them he would be sued by the SEC.

      Reply
  10. hot toddy

    his only hope is a full blown recession, that way the supply chain problems will catch up with the draw down in demand

    Reply
  11. TOM

    i always thought CEO’s were hired because of their leadership and ability to navigate their companies to profitable growth. not seeing any of that here, just excuses of why it ain’t his fault, the value of your company only rolls to the top on the hill. react to adversity not find excuses to fail, take responsibility and find a solution to this mess or step down so someone who can, this guy must have had something to bring to the table for the board to appoint him or does he just do the talk, yak yak yak with no action.

    Reply
  12. Robbi

    Let me guess?? Supply will be low unless it’s an electric vehicle??? Shocker

    Reply
  13. Ron R

    5 months now waiting on a tranny part, and even an executive assistant can’t help me. No tracking system. Truck is undrivable. Nice. Wtf am I supposed to do?

    Reply
  14. Crabbymilton

    Then people have blind loyalty to FORD? They get what they deserve when they build crap and stonewall and jerk around people that spend hard earned money on their products. FORD seems to be able to spend money to partner with musicians and sports figures. What good does that do for people like you who can’t use their vehicles?

    Reply
    1. Robert.Walter

      Gosh, I still remember GM’s Bob Seger Like A Rock ad campaign. And wasn’t it Eminem who was advertising for Chrysler? Don’t bring up Ford’s Cosby ad campaign tho.

      Reply
      1. Crabbymilton

        For many years, CHRYSLER used Ricardo Montalban to pitch their products. Now whether that did any good who knows. I personally don’t see the appeal of someone singing to me about a vehicle. I can do without that noise.

        Reply
        1. KathyG

          Didn’t Mercury use Catherine Deneuve in ads/commercials? Now that was something. Too bad we don’t see more of this. Lincoln could use some glamour to hide the fact it’s a fancy Ford.

          Reply
          1. crabbymilton

            I forgot about that. But then again MERCEDES and LEXUS don’t seem to need entertainers to sell their products. Ricardo Montalban was likely an easy choice for CHRYSLER since he was a CHRYSLER enthusiast all of his life.

            Reply
          2. AndyK

            Ahhh Catherine. I used to love the commercial when she would “Meow” at the end. OMG, can’t get away with those kinds of commercials today. You offend pretty girls. I guess they can get Honey Boo Boo and Mama June types to model instead….LOL Oh wait, Lincoln sales are already down, why have sales go down even more.
            Yes, Lincoln could use some “Glam” big time.

            Reply
  15. Chief

    Go to a junk yard get a tranny out of a older car and make a tranny adapter.

    Reply
    1. JB Books

      It won’t be compatible with the harness and codes will light up the instrument panel like Christmas and even if it were drivable it wouldn’t be registerable on the left coast or any of its hammer & sickle groupies.

      Reply
      1. Firebird

        Rebuild a tranny. Arg don’t be a part replacer.

        Reply

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