Ford stock tumbles after report this week that it warned of inventory buildup

Ford Motor Company F recently warned that parts component shortages, primarily other than semiconductors, could lead to a buildup of 40,000 to 45,000 vehicles in inventory by the end of the third quarter. The automaker's shares were sold off after the announcement.

The Wall Street Journal said that the company is now being constrained by the lack of blue oval badges that go with its vehicles as a brand identifier. The report said that the F-150 pickup trucks are some of the vehicles that are affected by the shortage.

Ford has tried some workarounds including the use of 3 D printing to create the insignia as a stop-gap arrangement. The report suggested that it isn't yet clear whether the inventory buildup the company warned about this week was caused by badge shortages.

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Automakers are forced to build vehicles without semiconductors and park them until the chips can be sourced, because of the shortage of components, according to the report. It added that this has resulted in the piling up of tens and thousands of cars and trucks at airport lots and near assembly plants in the South and the Midwest.

According to Benzinga Pro data, Ford closed Friday's session at $12.31, down 3.60%.