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Ford CFO John Lawler Says Chip Shortage Will Extend Into 2023

As most are painfully aware by now, the semiconductor chip shortage has endured for well over two years at this point, with little improvement taking place over that time period. The chip shortage has also been joined by a host of various other sorts of supply constraints, which when coupled with things like labor shortages and inflation, have made the act of producing and purchasing vehicles rather frustrating. Unfortunately, it doesn’t seem like this situation will improve in the near-term, either, according to Ford CFO John Lawler, who recently became the temporary leader of the automaker’s global supply chain organization.

“As I said earlier, we expect the chip issue to continue into 2023,” Lawler said while speaking during a recent fireside chat with Bank of America. “We don’t think there’s going to be a significant relief from that standpoint. So we’re going to be constrained.” Last December, Ford CEO Jim Farley predicted that the chip shortage would last through 2023, but this past September, he also admitted that he doesn’t see an end to the world’s various supply chain problems in the near future. As such, Ford is focusing on solving its quality problems in the meantime.

Regardless, supply chain issues continue to represent a proverbial thorn in FoMoCo’s side, delaying the launch of numerous models including the E-Transit, as well as presenting the buyers of vehicles like the 2023 Ford Maverick with a host of constraints and late availability options and features.

2023 Ford F-150

Meanwhile, Ford continues to build and stash what it calls “vehicles on wheels,” and had around 40,000 of those models that are awaiting various parts stored at its facilities as of the end of September. However, Lawler recently stated that these vehicles are expected to be completed and shipped to dealers by the end of the 2022.

We’ll have more on the chip shortage soon, so be sure and subscribe to Ford Authority for continuous 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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Comment

  1. Terry ross

    Knowing aoytle about the “Chip” industry i know that there is no chip shortage. The problem lies in the fact that the automobile industry fell behind in updating vehicle electronics like the engine control modules. The Chip manufacturers have moved on with new designs and technology whilst the automobile industry has refused to stay with the times. The “shortage lies in the fact that the Chip makers do not produce the old model chips anymore and the shortage is the fault of them not the Chip manufacturers.

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