Help with understanding production

[futuremavowner]

I’m confused about how Ford is handling production of the Maverick. Is it true that they are about to cut off Hybrid orders and not reopen them until next summer? If they make the engines and transmissions in their own plants, use some parts that are common to other models, and their 3rd party suppliers are obviously already tooled to make parts, why the cut off? Why not keep making and ordering parts so customer demand can be met? I haven’t followed or purchased a new Ford since 2005 so I’m not familiar if this is how they normally operate. Why not continue to take orders to have customer demand in the pipeline and convert them to 23 models if need be? Some of you that know how they operate please let me know what I’m missing so I can understand. Thanks!

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[icegradner]

Usually parts are ordered in batches, a year or more in advance of production. That means the suppliers have only ordered enough enough materials to build that many parts, in order to fulfill what Ford ordered. That means Ford can only build a set amount of vehicles, regardless of how many orders they may get. If Ford orders more parts, they have to then wait, months for the suppliers to get new materials to build more parts, and that is assuming that supplier isn't busy making parts for other vehicle models. That's just how the supply chain is setup in contracts.

 

[futuremavowner]

Usually parts are ordered in batches, a year or more in advance of production. That means the suppliers have only ordered enough enough materials to build that many parts, in order to fulfill what Ford ordered. That means Ford can only build a set amount of vehicles, regardless of how many orders they may get. If Ford orders more parts, they have to then wait, months for the suppliers to get new materials to build more parts, and that is assuming that supplier isn't busy making parts for other vehicle models. That's just how the supply chain is setup in contracts.

 

[futuremavowner]

Thank you!

 

[Rob Cactus Gray]

To add, a lot of parts are built in house but the materials may be sourced elsewhere. Manufacturing limitations of the factory and supply constraints for the foreseeable future limit production numbers. The 2023 model could have different features and pricing structures, easily giving up profits if orders are taken for 2023 now. There could easily be a years supply of hybrids on order as it stands, Ford doesn’t really want to risk pissing off even more people. They might also want to feed the dealers with stock units at some point.

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