Ford Motor Company has announced a decision to reduce production of its highly anticipated all-electric pickup truck, the F-150 Lightning, in order to better align with consumer demand. This adjustment comes as a result of softening demand for higher-priced premium electric vehicles and the need to make strategic changes in response to market conditions.
Key Takeaway
Ford has decided to cut production of the all-electric F-150 Lightning in order to align with current consumer demand for premium electric vehicles. This adjustment reflects the changing market conditions and the need to make strategic changes to meet customer expectations.
In October during its third-quarter earnings call, Ford executives hinted at their intention to “adjust” the production of its all-electric vehicles. While the company did not explicitly mention the F-150 Lightning during the call, examples were given of reductions in Mustang Mach-E production and the postponement of a second battery factory in Kentucky.
According to a memo sent to suppliers, Ford plans to produce an average of approximately 1,600 Lightning trucks per week starting in January. This is a significant decrease from their initial plan of an annual production capacity of 150,000 Lightnings, or about 3,200 trucks per week. As a result, the production target for 2024 has been halved.
While a Ford spokesperson did not confirm the specifics mentioned in the memo, they did state that the company will continue to adjust Lightning production based on customer demand.
This decision marks a reversal from January 2022 when Ford announced plans to nearly double production capacity based on the overwhelming customer demand for the truck. At that time, the company had received 200,000 reservations for the F-150 Lightning and intended to produce 150,000 vehicles annually by mid-2023. Plant upgrades at the Rouge Electric Vehicle Center in Michigan were carried out to accommodate this increased production capacity.
However, the demand for electric vehicles has softened within the industry as a whole, despite overall EV sales in the United States still showing growth. While EV sales are on track to exceed 1 million vehicles for the year, representing a 50% increase compared to the previous year, industry-wide growth has not matched expectations. This has led automakers to reevaluate their investments, delay factory improvements, reduce production capacity, and adjust their plans accordingly.
