Ford Cites Change In Market Demand, Slashes F-150 Lightning Production Targets – Ford Motor (NYSE:F)
Ford Motor Co (NYSE: F) is reportedly reducing its production targets for the F-150 Lightning electric pickup truck by half starting next year. This decision comes in response to changing market demand, according to Automotive News.
The company has informed its suppliers to prepare for a weekly average production of around 1,600 Lightning vehicles at its Rouge Electric Vehicle Center in Dearborn, Michigan, beginning in January. This represents a significant decrease from the original plan of producing an average of 3,200 units per week. However, the production of gasoline-powered pickups at Ford’s plants in Michigan and Missouri will remain unchanged.
Ford’s decision to cut production targets for the F-150 Lightning comes after the company announced during its third-quarter earnings call that it would delay its $12 billion electric vehicle (EV) investment. The delay includes postponing the construction of an EV battery plant in Kentucky. Ford CEO Jim Farley stated that the company will continue to focus on combustion engine vehicles and hybrids while scaling its EV business.
Farley emphasized that Ford’s strategy differs from other automakers who are transitioning directly from internal combustion engine (ICE) vehicles to EVs. He stated, “Our bet is maybe different than others who just said, look, we’re going to get rid of an ICE Explorer and go to an EV Explorer. That’s not our strategy.”
While Ford’s EV unit has reported losses in earnings before interest and taxes, the sales of the F-150 Lightning have been on the rise. In November, Ford sold a record 4,393 units, marking a 113% increase compared to the previous year.
Ford’s decision to reduce production targets for the F-150 Lightning reflects the company’s cautious approach to its EV business. While other automakers are aggressively pushing for a full transition to EVs, Ford is focusing on a balanced approach that includes both ICE vehicles and hybrids. The company’s decision to delay its EV investment and cut production targets suggests a need to reassess market demand and ensure a sustainable transition to electric vehicles.
It remains to be seen how Ford’s strategy will fare in the growing EV market. With increasing competition and stricter emissions regulations, automakers are under pressure to adapt to the changing landscape. Ford’s focus on hybrids and ICE vehicles may provide a smoother transition for customers who are not yet ready to fully embrace electric vehicles. However, the company will need to carefully monitor market demand and adjust its production targets accordingly to stay competitive in the evolving automotive industry.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
