Ford Delays the 2021 Bronco: Should Investors Worry?
The first customers for the highly anticipated revival of Ford Motor Company's (NYSE: F) Bronco won't be getting the off-road SUV as soon as they had hoped. Last Friday, Ford confirmed that the 2021 Bronco won't arrive until next summer, because of pandemic-related supplier problems. This compares to the initial plan for a spring launch. But while this is an unfortunate speed bump, it doesn't seem like a very big concern for Ford shareholders.
The announcement that 2021 Ford Bronco deliveries will be delayed may be a case of managing expectations. While Ford says that the first deliveries have been postponed from spring to summer, the Bronco was originally scheduled to reach customers in June 2021. A delay from spring to summer could amount to as little as a one-month shift in delivery timing.
There are other reasons to believe that the delays may be modest. Ford had intended to allow Bronco reservation holders to start placing orders this past Monday. Now, it plans to start taking orders in January: just one month behind schedule. Furthermore, the suppliers that are causing the delays make the Bronco's removable tops, according to The Detroit Free Press. The silver lining is that since they are all removable, Ford can ramp up vehicle production as planned and put the tops on later.
Source Fool.com
