Bronco production update 8/9: Commodity issues far beyond MIC tops. Chip shortage reaches Bronco supply chain (NO COVID TALK)

[navi]

While I do not disagree that Ford will be reluctant to go out of pocket substantial amounts to accommodate affected customers, it is not correct to say that unanticipated expenditures won't be made because of prior market projections. When Ford provides its financial outlook each quarter, it supplies nearly a page and a half of disclaimers to the basic effect of, projections are just projections and may not be achieved, and all sorts of things (they give a long list) may happen that cause projections to be incorrect.

Ford will assess the situation on an ongoing basis and should, if it is doing its job for shareholders, make the decision that it expects to have the best return for shareholders. If it expects that most customers will put up with delays without defecting, as you say Ford will likely do little or nothing in the way of accommodation.

If it expects that alienation of customers will have a substantial cost, it has an incentive to take corrective actions to ameliorate that problem as long as the expected cost of the actions is less than the expected cost of the status quo. The expected cost of the actions need not be zero. And it will not have any securities law liability for doing that, even if it causes projections not to be achieved, unless a shareholder can prove that Ford knew those projections were wrong or unreasonable at the time they were published (its not enough to show that they became wrong later because of unanticipated developments).

That being said, you are probably right that Ford will take at most token actions to address unhappy buyers. But that's because they know that the worst that can happen is that order cancellations grow substantially, and they probably believe they have alternate buyers for a lot of vehicles if that happens.

what's the upshot?

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[navi]

See this is what I don't understand - if there really is an issue with these tops, such that there is a substantial chance that they won't be able to send them out, why even build these?

These aren't flawed like the bad batch.

 

[ATLColonial]

These aren't flawed like the bad batch.

Do we know this for sure?

 

[GoTigersGoBronco]

Yeah, that is the high dollar low volume power sunroof top. i.e., not the top that is on 90% of the wrangler hard tops and all the gladiator hard tops.

You’re right, but that doesn’t negate the fact that a majority of sunroofs and convertible tops in the world are made by Webasto.

All that said, it seems doubtful Continental has a bunch of unused capacity to take over the Bronco program in the short or mid term.

 

[The Dmv]

0.0%

So slightly more likely than Ford taking responsibility for the dumpster fire, apologizing, and giving us details.

 

[navi]

Do we know this for sure?

Well, Ford is dumb, but if they're that dumb they should torch MAP and collect the insurance.

 

[Gamecock]

These aren't flawed like the bad batch.

Wait, a little while ago you said you heard they were halting all deliveries...now you know that these tops are good to go? Your sources move quickly...who are you getting this from?

There's a rumor that Ford is halting all deliveries of Bronco’s for 21 except for FE until they get the new roof supplier up and running.
Can you check on that with your MAP folks?
It seems ridiculous but you never know.

 

[The Dmv]

Has anyone heard a peep from Ford’s CEO on all this? Is he even real?

 

[navi]

Wait, a little while ago you said you heard they were halting all deliveries...now you know that these tops are good to go? Your sources move quickly...who are you getting this from?

uh no, I said there was a rumor that they were haling deliveries and that it seemed ridiculous.

 

[Gamecock]

uh no, I said there was a rumor that they were haling deliveries and that it seemed ridiculous.

Well, you asked if it was true, then suddenly knew somehow that the tops were now good to go. How?

 

[SpringTXOR]

Has anyone heard a peep from Ford’s CEO on all this? Is he even real?

He is probably partying harder than his late cousin ever did!

 

[Dads_bronze_bronco]

You’re right, but that doesn’t negate the fact that a majority of sunroofs and convertible tops in the world are made by Webasto.

All that said, it seems doubtful Continental has a bunch of unused capacity to take over the Bronco program in the short or mid term.

My son interviews with the Corvette body parts maker on Thursday. I’ll have him ask if they can make Bronco tops …

 

[navi]

He is probably partying harder than his late cousin ever did!

He's busy coordinating Levine's off road adventures, and they are both fucking pumped !

 

[ATLColonial]

Well, you asked if it was true, then suddenly knew somehow that the tops were now good to go. How?

Yeah this is the question I most want answered - are they pumping out these things with a 50/50 chance the roofs are bad, or are the roofs they're installing now issue free? Seems silly to continue making anything with a MIC if they aren't even sure they'll be able to ship them.

 

[hozer]

If more MICs are being scheduled and built today (which is the case) either:

Lot Broncos are bad for something other than MICs

Ford has a solution to Broncos with Bad MICs.

My dealer said it's semi conductors, but that would delay the entire line. Either roofs are bad, or that whole bunch is screwed for something else

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