“We expect the negative working capital impact of those units to reverse in the fourth quarter when the vehicles are completed and shipped to dealers.”

In context

“costs incurred by our suppliers, partially due to inflationary impacts on labor, freight and commodities as well as higher costs because of our inconsistent production schedule, which has been disruptive for our partners. So, providing greater certainty and schedule stability to our supply base is just one example of the many opportunities we have in front of us as we transform our global supply chain. So, we’re very grateful for our suppliers’ ongoing support and the collaborative approach they are taking to address production shortfalls, while also focusing on improving the quality of the parts they ship to us. In the quarter, we delivered $3.6 billion in free cash flow with strong cash generation by our automotive business, despite the adverse effects of the 40,000 vehicles on wheels. We expect the negative working capital impact of those units to reverse in the fourth quarter when the vehicles are completed and shipped to dealers. Our balance sheet continues to be very healthy. And we ended the quarter with strong cash and liquidity of $32 billion and $49 billion, respectively. And these numbers include our remaining stake in Rivian, which was valued at less than $1 billion at the end of the quarter. Now, I’ll touch on the performance of our business units. North America delivered $1.3 billion of EBIT and a margin of 5%. Both of those measures were driven down year-over-year by higher commodity costs, inflationary pressures and a diverse mix, reflecting the buildup of vehicles on wheels and inventory. Our brand strength and order banks remain very strong, and we expect the North American margin to return to double digits in the fourth quarter. South America continues to benefit from our global redesign efforts, del”