DETROIT – Ford Motor on Monday warned buyers that the corporate expects to incur an additional $1 billion in prices through the third quarter resulting from inflation and provide chain points.

Ford stated provide issues have resulted in elements shortages affecting roughly 40,000 to 45,000 autos, primarily high-margin vans and SUVs that have not been in a position to attain sellers.

The corporate expects to finish and ship the autos to sellers within the fourth quarter and remains to be projecting 2022 adjusted earnings earlier than curiosity and taxes of between $11.5 billion to $12.5 billion.

Shares of the corporate fell about 5% in prolonged buying and selling following the replace.

Ford cited current negotiations leading to inflation-related provider prices that may run about $1 billion larger than initially anticipated.

The automaker anticipates third-quarter adjusted earnings earlier than curiosity and taxes to be within the vary of $1.4 billion to $1.7 billion.

Ford added that executives will “present extra dimension about expectations for full-year efficiency” when it experiences its third-quarter outcomes on Oct. 26.

Automakers have been battling provide chain issues for the reason that coronavirus pandemic introduced manufacturing to a standstill in early 2020. Demand continued to be sturdy regardless of ongoing points with the provision of elements, particularly, semiconductor chips.

Ford’s largest crosstown rival, Basic Motors, introduced comparable points earlier this 12 months. GM on July 1 warned buyers that provide chain points would dent its second-quarter earnings, noting it had about 95,000 autos in its stock that had been manufactured however lacked some parts.

GM on the time additionally reconfirmed its yearly steerage and stated it expects that “considerably all of those autos” will likely be accomplished and bought to sellers earlier than the top of 2022.