Footage of hundreds of brand name new, unsellable Ford F-150s parked in heaps in not less than three states expressed the semiconductor scarcity in actual and monetary phrases. Ford’s ache has been particularly dreadful; CEO Jim Farley mentioned 9 of Ford’s Tier 1 suppliers relied on chips from a single chip maker that skilled a hearth in its clear room. This break within the provide chain is breaking the knees of Ford’s star participant. Earlier this month, the Detroit Free Press reported the automaker had sourced a provide of chips that might permit it to ship hundreds of vehicles to sellers and preserve manufacturing strains going. Now, Automotive Information experiences that Ford is discussing an thought with sellers to ship vehicles earlier than the chips are put in. Any sellers receiving such automobiles would get coaching for service workers on methods to set up the {hardware}, and compensation for practically an hour’s price of labor for every restore. That is solely an thought for now, and if it grew to become actuality, solely sellers agreeing to the plan would obtain unfinished vehicles.      

A brace of necessary questions want passable solutions earlier than this has an opportunity of leaving the whiteboard. Sellers will not need the duty of paying for and insuring vehicles on their heaps that they cannot promote, and extra importantly, do not know after they’ll be capable to promote. The revenue and loss folks hate these sorts of eventualities. Some sellers are additionally cautious of accepting accountability for such repairs. Chips which are necessary sufficient to make a truck unsellable when these chips are lacking will management necessary, and maybe quite a few, programs. Ought to something go incorrect down the highway, clients and their legal professionals will scrutinize all potential connection to dealer-installed chips.    

Ford F-Sequence gross sales are solely down 1.5% by means of the top of June in comparison with 2020. Nevertheless, F-150 gross sales in June plummeted 26.9% in comparison with 2020, and these numbers are relative to the pandemic 12 months. Contemplating the brand new automotive market’s present astronomical demand, Ford’s extremely motivated to spitball with sellers till they arrive to some mutually worthwhile settlement on minimizing the delay between ending vehicles and promoting them. And it is sure Ford is uninterested in paying locations like Kentucky Speedway to park gaggles of its golden geese. A Ford spokesperson would solely inform Automotive Information, “We’re exploring a lot of totally different choices as we work to get our clients and sellers their new automobiles as shortly as potential.”