Ford Stock Plummets on Higher Inflation-Related Costs
Sep 20, 2022 By MarketDepth
Ford (F:NYQ) stock is under pressure after announcing a $1 billion hit to the bottom line. Product costs are increasing due to inflation and a continued parts shortage both are driving the price of Ford stock down. Ford announced vehicle manufacturing delays due to parts availability.
Ford shares are down 10% on the day after the announcement and down 40% year-to-date. The company’s announcement has dragged the sector down with it with GM down 5% intraday.
Ford has said they have about 40,000 vehicles that are lacking parts with shortages dragging on. Not only are they seeing a dim outlook due to economic conditions, but interest rates rising are causing turmoil in the financing department. The company is set to release earnings on Oct 26, which will give us a better outlook on market conditions.