Ford Authority

New Ford Vehicle Supply May Be Impacted By U.S. Freight Rail Crisis

Supply chain issues continue to impact just about every industry, and unfortunately, Ford production is still massively limited by shortages of microchips and other critical goods . At best, these supplier constraints prevent vehicles from being delivered with certain features, and at worst, they prevent the vehicle from being built at all. As Ford Authority previously reported, many frustrated buyers of a new Blue Oval product are currently wondering why their vehicles haven’t been delivered yet. Unfortunately, a recent report by Wired has revealed yet another setback that could affect the supply of new Ford vehicles, as railway issues have likely a trouble point for automakers and for business that rely on the U.S. freight rail industry to transport their goods.

The current issues facing the U.S. railroad industry revolve around a contract dispute between railway workers and the companies that employ them, as their union-negotiated contracts expired three years ago. If an agreement is not reached by September 15th, 2022, the railway workers could go on strike. If this happens, it could be catastrophic for the U.S. supply chain, grinding transport to a halt. In turn, this could have a major effect on the automotive industry, as many critical parts for new vehicles are transported via railroads. If these parts are not delivered, new Ford vehicles can’t be built, potentially raising the price of new cars to new heights and creating additional low-supply scenarios at the dealer level.

However, Ford CEO Jim Farley remains optimistic that the supply of new Ford vehicles will improve by 2023. Farley projects that while new vehicle supply will shrink in the third quarter of 2023, supplier constrains should lift by the fourth quarter. He also predicts that the ongoing global microchip shortage should ease by next calendar year, although potential railroad transportation issues could alter that timeframe, as his comments reflected the chip crisis, not the broader macroeconomic issues impacting the rail industry in 2022.

We’ll have more on this issue soon, so subscribe to Ford Authority for 24/7 Ford news coverage.

Alexandra is a Colorado-based journalist with a passion for all things involving horsepower, be it automotive or equestrian.

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  1. Tim weyand

    Unfortunately since 1948 too now . Wages and Ridiculous On call for Rail Road Locomotive Operating Engineers Or Drivers. Also Car Man FREIGHT CAR Rail Road Repair in Field as I was at TTX .Had Working Weld Certifications yes I did alot of Schooling at College Always out of position as many at the college.Any way Various Wages Times ECT not addressed. Hopefully will not come too a Crippling Transportation Rail Road Strike. Their are Solution s. Support these People fortunately for me I Worked with many Awesome 👍 People in Servicing Rail Road Freight Cars Tubs Flat cars Friction Gears and End of Cat Cushing units . Like Key Stone for Nitrogen oil charged Gears alot on Auto Racks . Also Tubs or Spine Articulated which had Miner Gears ECT. Wheels Side Frames Bolsters ECT. Heard in 1944 June 6TH DDay Allies put 10 000 Tail Road Freight Cars too Defeat Nazi Germany and the Rest of Fascist Italy. Then of course after the War . Also earlier a Tremendous amount of Coal Oil when UBoats off the Eastern US Coast between January 1942 too think June July. Of 1942 . Have a Arizona 2010 Focus been a Excellent Small Car thee think STX Focus Sport Wagon Springs think 2007 Fit Perfectly in 4 Door SE Sedan up dated Front Rotors I should say my Excellent Field Mechanic JC. He worked on some of those 428 Engines . Hope Ford can adapt as GM Chrysler or Dodge. Yes Fan of FORD RACING DEVELOPMENT. YOU CAN DOIT. Hopefully WALL STREET LISTEN TOO HANDS ON THINK ING SOLUTIONS AHEAD RAIL RAIL RAIL HEAD WORKERS

  2. Dave Mathers

    A ‘strong’ federal government would ensure that the trains kept moving so that the economy was not harmed .

    1. D Y

      A strong government would have not allowed the current “pseudo-monopoly” to have developed as the railroads merged and merged until there are only a very few left.

      The reduction of independent rail companies has resulted in higher prices and worse service.

      Maybe this was intentional, at some point the federal government has to (and has) step in and tell the companies what to do. Eventually maybe they expect to direct their operations. In any case, it hasn’t helped anyone to get the US down to what, three or four strong regional or intercontinental carriers, from what I’m sure was 8+.

  3. Ed

    The union contracts expired 3 years ago so the companies have been dragging their feet not getting a current contract in place. When someone doesn’t do their job, as in the companies getting down to get a new contract in place, drastic measures may have to happen to get these things done.

  4. Tim

    The Railroad industry can not strike unless it is a safety issue. I’ve worked for a rail company and we where past due on our contract. So after a couple of years it finally went to a law board and a contract was finally signed. Unfortunate for rail workers they think they are going in to a good career good pay, good insurance, and good retirement. But the fact of the matter is that you can go to work at any moment with only a hour and a half notice, and your constantly being watched by management. Call off sick and that’s a mark on your record. Want a personal day off that’s a no because someone with more seniority than you requested that day off all ready, and forget taking a holiday or Superbowl Sunday off because that puts you under the microscope. The Railroad hires to fire. Like I said no railroad can strike unless it is a safety issue. Regardless of contract issues the railroad still runs. As for this article it’s a excuse for a company (Ford) to blame the working class instead of taking the blame for there own issues.

    1. JoeE

      EVERYBODY just needs to stop being so money grubbing greedy. Execs need to pay their people fairly and the people need to stop trying to break the companies they work for. Just look at the defense industry.

      1. Yaya

        Pay isn’t the issue.

  5. Wayne

    Why not give the option to pickup your vehicle at the factory, the thieves get to do it all the time. What a concept that would be

  6. Ben budzios

    I have already been waiting 14 months for my Maverick to be built. Maybe, Ford should offer persons who have an order waiting the $1495 shipping charge plus a free plane ticket to go get their vehicles and drive them back from Mexico.


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