Ford (NYSE:F) just announced a change in leadership with hopes to strengthen product creation and transform global supply chain management. This news comes at a time when Ford stock has not performed all that well.

The automaker announced a slew of changes in response to the current business environment. More specifically, it comes just days after Ford said it sees roughly $1 billion in unexpected supplier costs for the third quarter. The news came on Tuesday, Sept. 20, with shares falling more than 12% in the session.

So what changes is Ford making to combat the situation? A few of its major changes include:

• Current CFO John Lawler will “oversee a makeover of Ford’s global supply chain operations on an interim basis until a chief global supply chain officer is selected.”
• Doug Field, who is the current Chief EV and Digital Systems Officer, will take on an “expanded role as Chief Advanced Product Development and Technology Officer.
• Roz Ho from HP (NYSE:HPQ) and Jae Park from Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google join Sammy Omari from Motional and Rob Bedichek, who worked for Intel (NASDAQ:INTC) and Apple (NASDAQ:AAPL). Together, they will help Ford create more connected and advanced vehicles.

The Path Forward for Ford Stock

It’s been a well-known and ongoing issue since the pandemic that automakers have been struggling with supply chain issues. Still, that leaves investors wondering where to go from here with Ford stock.

The transition to electric vehicles (EVs) has been bumpy for many automakers. The volatility in the stock market over the last 30 months hasn’t helped, nor have supply chain woes. Ford has done relatively well with its plans, though.

The electrification of the country’s best-selling vehicle — the F-Series pickup — puts Ford in an immediate position to benefit from the EV trend. Its Mustang Mach-E and E-Transit are solid strategic moves as well.

While those decisions are great for the long-term trajectory of the company, investors are worried about the short-term volatility.

Unfortunately, we’re seeing how that’s panning out now. Ongoing inflation and supply chain disruptions are causing major problems for U.S. companies, particularly for automakers. Until that situation improves, Ford stock may struggle for traction.

That said, let’s not forget how well shares were doing until recently. Ford stock had recently rallied almost 60% off the low. While the equity markets have been extra choppy lately, an improvement in the stock market and in the company’s supply chain could send shares higher once again.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.