![Suppliers told Reuters they’re passing on the cost of rising material, labor and energy prices by 7% to 20%. - IMAGE: Getty Images/studio-fi](https://dealerimages.bobitstudios.com/upload/fi-and-showroom/content/news/2022-09/suppliers_092222-__-720x516-s.jpg)
Suppliers told Reuters they’re passing on the cost of rising material, labor and energy prices by 7% to 20%.
IMAGE: Getty Images/studio-fi
Suppliers are indeed charging automakers more for parts, Reuters found when it surveyed several parts makers after Ford said this week it’s experiencing a $1 billion increase in costs.
The suppliers told the news agency that they’re passing on the cost of rising material, labor and energy prices by 7% to 20%.
Ford warned investors on Monday that it would absorb $1 billion in extra costs in the third quarter, thanks for inflation and supply chain problems. The announcement sent its stock into a nosedive for its worst day in more than a decade. Ford said it plans to restructure its supply chain as a result of the unexpected cost hit.
The price increases come as carmakers continue to grapple with supply shortages, including of microchips for electric-vehicle batteries, that have slowed production and squeezed dealers’ inventories.
Originally posted on F&I and Showroom
0 Comments
See all comments