The EV market didn’t grow as fast as Ford was hoping
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Ford is reevaluating its production plans for the 2024 F-150 Lightning. Initially, the Dearborn plant had aimed to produce 3,200 trucks per week, but it is now considering a reduced production target of 1,600 trucks per week.
The Blue Oval’s decision to reduce production targets for the 2024 F-150 Lightning is part of a broader shift in its electric vehicle (EV) strategy. The company is not only lowering production goals but also cutting back on EV spending. Furthermore, Ford has downsized a battery factory that was under construction in Michigan, reflecting its reconsideration of electric ambitions.
Ford CEO Jim Farley said that demand for EVs hasn’t grown by as much as the company was expecting, reports Bloomberg. He blamed high prices and inadequate charging infrastructure for pushing consumers out of the market.
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Read: Pricey Cars, Not Range Anxiety, Are The Real Speed Bump For EV Adoption
Although studies suggest that EVs are getting closer to being affordable for customers, they are still more expensive than internal combustion vehicles at a time when monthly payments and average transaction prices are notably high across the industry. That has caused prices to become consumers’ top concern in the EV market, surpassing charging infrastructure and range anxiety.
In addition to the revised production plans for the F-150 Lightning, Ford is also slowing the line that builds the Mustang Mach-E in Mexico. The company said they would continue to “match production to customer demand.”
Although growth in the EV market has been slower than automakers hoped for, the market is still growing. For instance, November was the best sales month ever for the F-150 Lightning, of which Ford delivered 4,393 units to customers. While deliveries of the pickup were low in the third quarter of 2023, they were artificially depressed by plant shutdowns for expansion, and delays attributed to “quality checks,” something Ford has been struggling with lately.
The automaker’s decision to reconsider its production goals in 2024 also comes shortly after the launch of the Tesla Cybertruck. However, with the line for the stainless steel pickup still ramping up, it’s unclear how much of a concern that will be for the F-150 Lightning.
