Ford CEO Jim Farley at the company’s Dearborn, Michigan plant where the electric F-150 Lightning will be built on April 26, 2022.
CNBC | Michael Wayland
DETROIT — Ford Motor on Thursday announced plans to restructure its global supply chain, days after the company announced it would book an additional $1 billion in unexpected supplier costs in the third quarter.
The supply chain restructuring aims to “support efficient and reliable component sourcing, in-house development of key technologies and capabilities, and best-in-class cost and quality execution,” the automaker said in a press release.
related investment news
The effort will be temporarily led by Ford Chief Financial Officer John Lawler pending the selection of a chief supply chain officer. Lawler is stepping in at a time when parts and raw material costs for automakers and suppliers have skyrocketed during the coronavirus pandemic. The surges have come amid severe supply chain issues, including an ongoing global shortage of key semiconductor chips.
On Monday, Ford said recent negotiations resulted in inflation-related supplier costs that were $1 billion higher than previously expected in the third quarter. The announcement, including an advance release of some earnings guidance, caused Ford stock to have its worst day in more than 11 years.
Jonathan Jennings, Ford vice president of supply chain, will also have additional responsibility for supplier technical support and quality, the company said. He will report to Lawler.
The supply chain plans were announced alongside other leadership changes and appointments related to electric vehicles, product development and other areas of the company.
Ford said the changes are an acceleration of CEO Jim Farley’s “Ford+ plan for growth and value creation.”