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The EV market prices and irregularities takes a toll at the company
Ford Motor Co. announced through a statement to its suppliers that the company has decided to halve the planned production volumes for its electric F-150 Lightning in 2024, due to the decline in demand for electric vehicle models.
According to the statement, Ford now intends to build 1,600 trucks per week next year at the Electric Vehicle Center Rouge in Dearborn, Michigan. Ford had previously discussed a volume of 3,200 trucks per week and an annual target of 150,000 trucks.
This decision comes after Ford cut $12 billion in electric vehicle investment and nearly halved the construction of the battery plant in Michigan. CEO Jim Farley stated that the anticipated high demand for electric vehicles has not materialized due to potential buyers resisting high prices and the irregularity in charging infrastructure. He noted that the production of the F-150 was a test for the adoption of electric vehicles in the United States.
Despite the F-150 Lightning achieving its best sales month in November with 4,393 deliveries, prices remain considerably higher than initially promised by Ford 18 months ago. While a summer price cut lowered the base price to $51,990, the company had initially stated that the less expensive versions of the Lightning would be around $40,000.
Sales of the Lightning in the third quarter declined by 46%, a result of the temporary factory closure for expansions and delivery delays. In addition to this model, Ford is reducing the production of its electric Mustang Mach-E in Mexico and temporarily putting on hold plans for a second battery plant in Kentucky.
UBS, in its December 11 report, revealed projections indicating that the sale of electric vehicles in the United States will experience a significant slowdown, reaching 11% next year, in contrast to the estimated growth rate of 47% for the current year. Despite challenges in the electric vehicle market, UBS emphasized in its report that a slowdown in the transition to electric models could be beneficial for manufacturers’ profits.
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