Ford Motors (NYSE:F) has announced that the launch of its upcoming Bronco SUV has been pushed from spring to summer 2021 because of COVID-19 related supply chain problems.
Supply chain problems leading to delays in the launch of Bronco
Jiyan Cadiz, the company’s spokesperson, said that customers that had reserved the Bronco were due to commence ordering on Monday. However, this has been pushed back until Mid-January. Cadiz said customer delivery of the new Bronco Two-door and four-door in the summer because of pandemic-related challenges that suppliers face. He added that Ford is committed to manufacturing Broncos with standards that customers deserve and expect.
Although the delay may not be ideal for customers, industry experts and dealers argue that the delay is better than potentially dealing with quality issues later. This could help avoid a scenario similar to that of the company’s botched Ford Explorer in 2019.
The delays in the launch of the Bronco is a troubling indicator for the company. The US automobile industry, especially of suppliers, continues to face problems because of increasing COVID-19 cased. Currently, the seven-day COVID-19 new cases average is at its highest level. In the spring, when the coronavirus spread rapidly across the US, automakers had to halt production of several products by months because of supplier challenges or conserve cash. Some factories had to shut for almost two months.
Ford has 150,000 reservations for Ford Bronco
The 2021 Ford Bronco is one of the most anticipated vehicles from the company in years. The new SUV will contribute up to $1 billion to the company’s North American pretax earnings once it sells 125,000 units. According to Ford, already 150,000 people have made reservations for the SUV that ford previously manufactured from 1965 until 1996.
Interestingly the supply chain issues have not affected the Bronco Sport, which is part of the new Bronco Family of cars arriving at dealerships. The Bronco Sports is based on a crossover or car structure and has less powerful four-cylinder engines.