This Growing Problem Could Threaten Ford's Big Gains

Before you go, we thought you'd like these...
Before you go close icon

Growing sales of models like the Escape have pushed some Ford suppliers to the limit. Photo credit: Ford Motor.

Ford  reported strong earnings in North America this past week, a third-quarter profit of $2.3 billion. That came as Ford's sales have been increasing, but there's a new challenge emerging as Ford keeps pushing to increase production to keep up with demand.

What's the challenge? Bottlenecks at suppliers. Ford's new global purchasing chief said this week that some of Ford's key suppliers are maxed out, and that has the Blue Oval worried. Parts shortages could bring a Ford assembly line to a quick halt -- but if suppliers push too hard to keep up, quality could start to suffer.

In this video, Fool contributor John Rosevear looks at the problem -- and explains how Ford is moving to make sure its expansion plans can continue on schedule.

The "no-choice" auto revolution is coming. Are you ready?
An under-the-radar auto company has giants such as Ford, General Motors, and Toyota clamoring for access to its revolutionary technology. Many forward-thinking car enthusiasts are plowing money into this little-known stock, because they know it holds a key to the explosive profit power of the coming "no choice fuel revolution." Luckily, there's still time for you to get on board if you act quickly. All the details are inside an exclusive report from The Motley Fool. Click here for the full story!

The article This Growing Problem Could Threaten Ford's Big Gains originally appeared on

Fool contributor John Rosevear owns shares of Ford and General Motors. You can connect with him on Twitter at @jrosevearThe Motley Fool recommends Ford and General Motors and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading