We must pay our respects to multiple Ford F-150 and Ford Transit van models. These Ford trucks and vans left the assembly plant only to be totaled in a massive train wreck. None of the trucks or vans survived.
A train full of Ford F-150 models derailed
Instead of chugga-chugga choo choo, today we’re saying chugga-chugga OH NO. A 44-car train derailment occurred in northeastern Missouri on Monday. As a result, dozens of new Ford F-150 models and Ford Transit vans were scattered across the countryside.
The derailment occurred on Rensselaer Lane and Burch Lane, in rural Ralls County, near Huntington. Route DD is currently closed to traffic and this scene could take days to clean up. No injuries were reported, and the cause of the wreck was unclear.
We aren’t sure how many Ford trucks and vans were entangled in this accident, but they are all confirmed to be totaled. They were finally exiting the Kansas City Assembly Plant in Claucomo, Missouri. However, they never made it to the dealerships.
How will this delay impact Ford?
Coronavirus (COVID-19), global semiconductor chip shortage, and train wrecks, oh my! The Ford F-150, Transit, Bronco, and more have been facing delays for months. Ford has been doing its best to keep up with demand.
One technique to keep trucks moving was to save their supply of chips for the most popular models, like the F-150. However, they still have 60,000 to 70,000 incomplete vehicles waiting for parts.
The F-150 models and other vehicles were being built without the chips and stored. Once supplies arrive, the vehicles will be completed, tested to ensure their quality, and shipped. Until then, they can be seen from space.
Ford is eager to get these vehicles on their way to clear up the backlog. Especially because they are racking up substantial storage fees. But they won’t be rushed. Ford intends to ensure the same high-quality standards as the vehicles that come straight off the production line.
This will be achieved with increased vehicle inspections prior to shipment. Then hopefully, the vehicles will make it to their final destinations without going off the rails. Ford CEO, John Lawler, expects to work through a majority of the incomplete vehicles by the end of the quarter.
Is Ford in trouble?
Not yet. Despite facing pandemic-related delays and the fire at the Renesas chip supplier, Ford made a profit last quarter. The Ford F-150, Transit vans, Bronco, Expedition, and more remain strong and popular.
But the profit is mainly attributed to cost-cutting measures and increased transaction prices in the booming auto market. Ford secured $26.8 billion dollars, which is $3 billion above earlier forecasts.
This is unfortunate for consumers, though. The average price of Ford vehicles in the US markets rose to $47,961. This is a 6.3 percent increase compared to the last quarter. Plus, a train wreck won’t help prices return to normal.
As chip suppliers like the Renesas plant return at full steam, they will continue working to stabilize the supply shortage. This provides a positive outlook for dealerships and buyers as more inventory is expected to arrive.