Ford pushing back dealer allocations until end of May; 100,000 units lost as suppliers struggle to deliver parts

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LAS VEGAS — Ford Motor Co., beset by ongoing production issues, told dealers on Saturday it was pushing back allocations and wholesale deliveries would be lighter through the end of May, though it continues to produce vehicles and fulfill customer orders.

Ford dealers who attended a hallmark meeting said Automotive News they did not expect new stock allocations until the end of May due to production cuts, although Ford spokesman Said Deep said the company was continuing to “build at the both for retail and for stock”.

That means new car showrooms that have been nearly empty for months will remain so during what is typically a healthy spring selling season for the industry.

Ford lost 100,000 production units due to 37 suppliers failing to supply parts as expected, the automaker told dealers at a meeting at the NADA Show here, according to three people present.

The issue exacerbated Ford’s inventory issues that left most dealership lots bare. Ford said it received 90,000 orders for new vehicles in January and another 72,000 orders in February, suggesting the company remains hampered by a backlog of orders amid production cuts. In February, about 33% of the company’s retail sales in the United States responded to orders from previous customers.

Company executives told retailers they would not receive any new-vehicle allowance until May, the three people said.

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